25 November 2010
is there any provision relating to the cash payment that should not exceed any amount in a single year for the expenditure. like there is a provision for cash expense that it should not exceed Rs.20000/- in a day????
Section 269SS provides that any loan or deposit shall not be taken or accepted from any other person otherwise than by an account payee cheque or account payee bank draft if, (a) the amount of such loan or deposit or the aggregate amount of such loan and deposit ; or (b) on the date of taking or accepting such loan or deposit, any loan or deposit taken or accepted earlier by such person from the depositor is remaining unpaid and the amount or the aggregate amount remaining unpaid ; or (c) the amount or the aggregate amount referred to in clause (a) together with the amount or the aggregate amount referred to in clause (b), is twenty thousand rupees or more
Section 269T :
Section 269T of Income Tax Act provides that any branch of a banking company or a cooperative society, firm or other person shall not repay any loan or deposit otherwise than by an account payee cheque or account payee bank draft drawn in the name of the person, who has made the loan or deposit, if (1) The amount of the loan or deposit together with interest is Rs 20000 or more, or (2) The aggregate amount of loans or deposits held by such person, either in his own name or jointly with other person on the date of such repayment together with interest, is Rs 20000 or more.
25 November 2010
sir here i am confused. there is one case one of my client he is dealing with one contractor.and he is paying him Rs 500000 in a year by cash payment during whole year and he is not paying him above 20000 in a day.
so i am asking that is there any specific limit for cash expense in a year.
CAclubindia
