08 April 2023
Our Jeweler client Accepts old gold from customer and sell a new one to them. In some cases He has to pay cash to them for purchasing old gold. My query is, Can the jeweler pay cash up to 2 lacs to the customer. is it violating the sec 269ST?
08 April 2023
According to Section 40A(3) of the Income Tax Act, if an assessee incurs any expense for which a payment or aggregate of payments was made to a person during a day in cash and the expenditure exceeds INR 10,000, the expenditure is not allowable as a deduction. Even the purchase of goods falls under the term expenditure.
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