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Cash Receipts above Rs. 20000

This query is : Resolved 

25 March 2011 Mr. X receives cash Rs 185000 against sale of Gold to Mr. Y. Can Mr. X accept such huge cash amount in cash?

I know that the Cash payment made by Mr. Y will be disallowed u/s 40(a)(3).

25 March 2011 Yes he can receive the same no problem from his side.

26 March 2011 yes it is disallowed for payment party not receiver


26 March 2011 Section 40 A (3) deals with the payment in excess of 20,000 and not receipt in excess of 20,000/-.

Even if the party made the cash payment in excess of 20,000/- he will surely split the amount through out the period and not going to suffer the disability in practical sense.




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