banner_ad

SECTION 40A(3)

Tax queries 322 views 4 replies
User Avatar

student
126 Points Posted on 11 December 2019

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

Reply Share Follow
On 11 December 2019 at 12:28 Report
Replies (4)
User Avatar

14 Points Posted on 11 December 2019
Upto Rs. 10,000/- is allowed
Reply
On 11 December 2019 at 22:07
User Avatar

55 Points Posted on 11 December 2019
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.
Reply
On 11 December 2019 at 23:23
User Avatar

17264 Points Posted on 12 December 2019
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.
101 Reply
On 12 December 2019 at 01:18
User Avatar

Student
23693 Points Posted on 14 December 2019
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
97 Reply
On 14 December 2019 at 23:14


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topic

More recent discussions | Post

Related Topics
Loading

Latest Job Openings

View all
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
10 May 2026
Finance specialist

Right way solution

Ajmer

CA

View Details