Partner Drawing
Jatin (B.Com) (473 Points)
06 April 2018
Can partner take drawing in cash every month above rs. 100000
RAJA P M
("Do the Right Thing...!!!")
(127173 Points)
Replied 06 April 2018
Jatin
(Accountant)
(3479 Points)
Replied 06 April 2018
RAJA P M
("Do the Right Thing...!!!")
(127173 Points)
Replied 06 April 2018
Jatin
(Accountant)
(3479 Points)
Replied 06 April 2018
| Originally posted by : RAJA P M | ||
 |
In single take then not allowed... |  |
Can you please quote the section under which this is prohibited?
RAJA P M
("Do the Right Thing...!!!")
(127173 Points)
Replied 06 April 2018
| Originally posted by : Madhavi Pandit | ||
|
Originally posted by : RAJA P M In single take then not allowed... Can you please quote the section under which this is prohibited? |
|
https://www.simpletaxindia.net/2017/02/cash-payment-limit-reduced-to-rs-10000.H T M L
RAJA P M
("Do the Right Thing...!!!")
(127173 Points)
Replied 06 April 2018
Budget 2017 Update:
In order to disincentivise cash transactions, it is proposed to amend the provisions of Section 40A of the Income Tax Act to provide the following:
1. To reduce the existing threshold of cash payments to a person from Rs. 20,000 to Rs. 10,000 in a single day i.e. any payment in cash above Rs. 10,000 to any person in a day shall not be allowed as deduction in computation of Income.
2. Deeming a payment as Profits and Gains of Business or Profession if the Expenditure is incurred in a particular year but the Cash Payment is made in any subsequent year of a sum exceeding Rs. 10,000 to a person in a single day
Please correct if I'm Wrong Madam...
RAJA P M
("Do the Right Thing...!!!")
(127173 Points)
Replied 06 April 2018
| Originally posted by : Madhavi Pandit | ||
|
My point is drawings is not expenditure. | |
Yes... I understand...
But, Cash Payment not exceeds Rs. 10k in a Day if it's Drawings or Anything also if Proprietor any Payments...
40A(3) Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, [exceeds ten thousand rupees,] no deduction shall be allowed in respect of such expenditure.
(3A) Where an allowance has been made in the assessment for any year in respect of any liability incurred by the assessee for any expenditure and subsequently during any previous year (hereinafter referred to as subsequent year) the assessee makes payment in respect thereof, otherwise than by an account payee cheque drawn on a bank or account payee bank draft 13[or use of electronic clearing system through a bank account], the payment so made shall be deemed to be the profits and gains of business or profession and accordingly chargeable to income-tax as income of the subsequent year if the payment or aggregate of payments made to a person in a day, exceeds 14[ten] thousand rupees:
RAJA P M
("Do the Right Thing...!!!")
(127173 Points)
Replied 06 April 2018
So,
As per Your view Can Give cash above 10k if it's not expenditure...!!!
RAJA P M
("Do the Right Thing...!!!")
(127173 Points)
Replied 06 April 2018
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