I have a query.I m gonna start a new business in which initial investment to buy capital asset is around 4.5lacs. Please help me in letting me know below queries :
1. How much amount we should pay in cash and in cheque so that tax impact will be less.
2. What if a person don't have adequate funds in his bank account however, he can arrange whole funds in cash. But as per new rule of income tax we can not spend over 2lacs in cash. How can we make a payment to the dealer of capital asset?
Please advice.
1. There is no tax saving in investment of capital assets. Can give everything by cheque.
2. You cannot take/repay cash loan above 20000 Rs. from any single individual/entity; so think beforehand.
CAclubindia
