MAXIMUM CASH REVENUE EXP. W/O EVIDENCE

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what is the maximum limit to pay an revenue expenditure without any bill or evidence in cash according to income tax.

like payment of repair to any shopkeeper who has no bill book , payment to hire auto/rickshaw or cash purchase of small goods without any bill..?

   

Replies (8)

Good question....but is there any maximum limit????

Hello Abhishek,

 

as per section 44AA r/w rule 6F, 

 

You have to keep supporting of expenses exceeding Rs.50 , others can be treated as petty and be supported by internal vouchers.

Income exceeding Rs.25, copies of bill raised to be retained by u

Mr.G.K Anna....

for eg : A runs a proprietory business....he incurs expenses such as Auto etc...

if Auto charge is Rs. 150/- what should he do???

Please clarify.....want to know....

Frankly

He can throw this rule out of the window... So would I :)

 

But of course, u cant follow the rule verbatim....

We just do the simple thing of keeping internal voucher and signing it (often ourselves), saying recipient's signature.... Only supporting document is intended by law.....

 

I LEFT OUT TO MENTION IN FIRST POST....

It is also provided in rule 6F, that where the cash book provides adequate details of the expenditure, the internal vouchers for expenditure below Rs50 also need not be maintained....

 

Its not a practical rule... it was set in 80's.....

 

 

rite....understand.....

Thank You.....

I depends on the case by case and circumstance.

Travelling by auto you can't provide bills.  But travelling by train you can annex train ticket. Even that can't be treated as valid document because any one would have travelled.

No there is section saying this.

Try maintaining even smallest amount bill as much as possible....like petrol bill,train ticket,bus ticket,stationery bills,etc...

It will prove better and true impression in case of scrutiny ....

make a voucher of Rs. 150 showing payment made towards Auto Rickshaw charges.

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