we have business and client deposited 1,05,000/- as advance in our bank account how it will effect
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Quick Summary
This discussion clarifies the Income Tax Act's cash transaction limit, stating that payments exceeding £10,000 in cash are generally not allowed, with exceptions under Rule 6DD. It explains that a client depositing £1,05,000 directly into your bank account is treated as a bank receipt, not a cash transaction. The query then explores whether accepting an additional £1,00,000 cash from the same client, bringing the total to £2,05,000, is permissible under these rules.
As per Income tax act you cannot pay more than 10000 as a cash to anyone, subject to rule 6dd. in case client has deposited rupees 105000 directly in your bank account it will be treated as receipt in bank account.