Cash receipt

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 August 2011 Is cash receipt of Rs.25 lacs from a debtor is allowed.
a) Can we receive from the debtors as cash
b) in case of day old bad debts is it permissible
c) The cash received can be deposited on the same day..!!(will it affect the PMLA will attract the transaction)

Pl. clarify

Preety Parik

Preety Parik (Expert)
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14 August 2011 1. Cash receipts are not subject to any disallowance. However u need to justify the genuineness of the transaction. Ensure that you keep a signed copy of the receipt, acknowledgement of the account statement and pan of the debtor.

2. It is strange that only a day old debt can be bad.I opine u need to wait at least for a year before u write off.

3. Yes cash received can be deposited on the same day.