Cash transaction

35000

The cash payment limit has been increased from Rs. 20000/- to Rs. 35000/-.

Regards,

Devendra k

yaah increased from 20000 to 35000

to everyone case or only for transportor

In case of other than transporter, the limit is Rs. 20000/-.

Cash payment

For transporter : < 35000

Other than to transporter : < 20000 ( as earlier)

pleale, inform me which is the supporting documents of incresing cash transection limit.

Enhancement of limit for disallowance of expenditure made in the case of transportersUnder the existing provisions of the Income-tax Act, where an assessee incurs any expenditure, in respect of which payment in excess of Rs 20,000 is made otherwise than by an account payee cheque or account payee bank draft, such expenditure is not allowed as a deduction. Given the special circumstances of transport operators for incurring expenditure on long haul journeys, it is proposed to raise the limit of payment to such transport operators otherwise than by an account payee cheque or account payee bank draft to Rs 35,000/- from the existing limit of Rs 20,000/-. For this purpose a new proviso is proposed to be inserted after the proviso in sub-section (3A) of section 40A of the Income-tax Act. The existing limit for other categories of payments will remain at Rs 20,000/- subject to the exceptions declared in Rule 6DD of the Income-tax Rules. The proposed amendment will apply to transactions effected on or after the 1st October, 2009. [Clause 16]

thanks , Mr Devendra

YES RIGHT SAID ALL ABOVE...

AGREE...

Yes for transporter up to rs. 35,000/-

and for other up to rs. 20,000/-