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?
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.
CAclubindia
