Can anyone please explain me permissible cash limits in terms of purchase.Does 40A(3) covers purchase in the explaination of expenditure???
Also i need detailed explaination on how much cash sale puchase is allowed both in income tax and in GST
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SECTION 40A(3)
Replies (4)
Upto Rs. 10,000/- is allowed
GST does not restrict any cash sales or purchase.
however in income tax act restrict the on payment of business expenses u/s 40a(3) upto rs.10,000. further section 269st restricted that any transaction in cash exceeding RS. 2 lakhs or more.
however in income tax act restrict the on payment of business expenses u/s 40a(3) upto rs.10,000. further section 269st restricted that any transaction in cash exceeding RS. 2 lakhs or more.
A) Cash limit is 10000/- and it includes purchase also.
b) Cash purchase allowed upto 10000/-
c) cash sale is allowed upto less than 2 lakhs
d) Under GST - no cash limits but ITax limits apply.
b) Cash purchase allowed upto 10000/-
c) cash sale is allowed upto less than 2 lakhs
d) Under GST - no cash limits but ITax limits apply.
CASH PAYMENT allowed u/s 40A(3) of the Income Tax Act 1961 is Rs. 10,000/- per day per person.
CASH RECEIPTS allowed is Rs. 1,99,999/- per day
CASH RECEIPTS allowed is Rs. 1,99,999/- per day
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