03 April 2017
Sir, there is a limit of 10000 per day cash payment is it related to only revenue item and i can give 2 lakh in cash in a day because its a capital item?
03 April 2017
Section 43 of the Income Tax Act has been amended by Finance Act 2017 which states if the assessee incurs any expenditure for acquisition of any asset for which aggregate of payments made in a day exceeds Rs. 10,000/- then such expenditure shall be ignored for the purpose of determination of actual cost.
In the view of above mentioned amendment you are requested not to make payment of Rs. 2,00,000/- in a single day.
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