06 April 2010
My client has 4 old cars. he sold 4 cars on hire purchase basys to some "x" and receiving that Hp instalment amount monthly in cash code (Rs.89000). My doubt is can he receive Hp instalment in cash mode in excess of Rs.20000. If not tell me the sec as per which it is violated. And sec 269T of income tax act will aplly to this receipt.
06 April 2010
Mr. Madhav there is no restriction in IT Act regarding Cash Recipts in excess of Rs.20000. Problem Concern to those who make cash payment neither to person who received cash.
however in this case the person who make payment in cash in excess of 20000 is also not requried to wooried because this is payment not required to debited in P&L a/c so that question of disallowance does not arise.
CAclubindia
