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When following cash basis of accounting, are my cash purchases allowed for income tax calculation?

This query is : Resolved 

14 July 2023 When following cash basis of accounting, are my cash purchases allowed for income tax calculation?

14 July 2023 Yes, if the amount of each transaction is below Rs. 10,000/-

14 July 2023 All the amounts are above 10K


14 July 2023 Not allowed ...
As per section 40A(3), where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than account payee cheque or account payee bank draft or use of electronic clearing system through a bank account, exceeds Rs 10000/-, no deduction shall be allowed in respect of such expenditure.



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