Advance of rs 500000 paid in cheque against freight services. After 3 trips freight amounts rs 72400/-. Transporter unable provide further services. Now transporter is refunding balance 427600 in cash.
Is it permissible under income tax?
Menu
Refund in cash
Replies (3)
Under IT Act provisions
Receiving or repayment of loan/advance in cash is not allowed if payment exceeds 20,000/-.
sections 269SS and 269T restricts to allowing payment/receipt in cash.
Please refer the above mentioned provisions....
In the present case transporter liable to pay balance amount in cheque/pay order/ECS and shouldn't be in cash mode.
Receiving or repayment of loan/advance in cash is not allowed if payment exceeds 20,000/-.
sections 269SS and 269T restricts to allowing payment/receipt in cash.
Please refer the above mentioned provisions....
In the present case transporter liable to pay balance amount in cheque/pay order/ECS and shouldn't be in cash mode.
As the amount is receipt of balance amount in cash; u/s. 269ST, a person is not allowed to receive cash amount of rs. 2 lakhs or more per any event.
thank you
Recent Topics :
- TDS on payment to a non resident
- NSFA(National Food Security Act) commission
- RCM applicability on petty GTA freight (₹450
- Short payment reccieved in export & GST implic
- Parag Gupta vs Purushottam Aggarwal- who is best f
- GST applicability on own-vehicle goods transportat
- FAST DS Scheme 26
- 12A registration expired in FY 22-23 and is not re
- Seeking Clarification on Business Code Selection a
- CG on property sold after construction of a house
Related Topics :
ARTICLESHIP
01 September 2026
Articles
Saini Pati Shah & Co LLP, Chartered Accountants
Mumbai
CA Foundation
View Details
ARTICLESHIP
16 September 2026
Article Assistant
MANUJ SHARMA AND COMPANY
Noida
CA Inter
View Details
ARTICLESHIP
21 September 2026
CA Article Assistant
KK & Company Chartered Accountant
Pune
CA Inter
View Details
09 September 2026
SENIOR AUDITOR & ACCOUNTS MANAGER
Anupam Parashar & Co.
Ghaziabad
CA Final
View Details
22 September 2026
Account Assistant
Chirag P Shah & Co. Chartered Accountant
Pune
B.Com
View Details
CCI
Pro
CAclubindia
