Hasmukh (Business) (32 Points)
06 February 2009Sir,
Can we accept unlimited cash towards supply of material ?
Will it be harmful under Income Tax Law ?
Will it be taxed ?
Is there any case law for this, if yes than send me.
Hasmukh Patel
Pranay Shukla
(CA)
(52 Points)
Replied 11 February 2009
Hello,
Sec 40A(3) of income tax act,1961 is specifically deal with expenditure made in cash above Rs.20000/- and also provide exception in Rule 6DD. Now refering your questions, it is crystal clear that we can accept cash above Rs.20000/- for the sale of material. It will not taxable.
CAclubindia
