Sir/Madam,
One of my friend going to buy a second-hand ed car , cost of around 18laks by full cash payment.
Can he buy ? He's been filing his IT returns from 4 years.
kindly suggest me
9 Replies
V SUBRAMANIAM
(Tax consultant )
(539 Points)
Replied 26 June 2021
Seller won't accept cash more than 2 lakhs.
Prabhat Pandey
(210 Points)
Replied 26 June 2021
Legally, you cannot do a cash transaction of more than ₹2 lakhs in a day. Unofficially, you can purchase the car on full cash. There are many dealers especially in states where laws are tax, who have no problems in cash transactions above ₹2 lakhs and people are buying cars on full cash payments from those dealers.
CA. Sourav Sarkar
(Chartered Accountant )
(24588 Points)
Replied 26 June 2021
It would violate section 40 of IT Act. Pay through cheque
veerendar singh
(tax consultant)
(3306 Points)
Replied 26 June 2021
Is he going to use the car for business or for personal purpose
Vasudevan C P
(403 Points)
Replied 26 June 2021
Please give more details of background of seller, buyer and purpose of car to be used
AJAY SHETTY
(27 Points)
Replied 26 June 2021
Thank you so much for clarifying my doubts .
He is going to use for his personal purpose, even seller has agreed to receive cash payment rather than cheque .
He is going to use for his personal purpose, even seller has agreed to receive cash payment rather than cheque .
CA. Sourav Sarkar
(Chartered Accountant )
(24588 Points)
Replied 18 July 2021
10k rupees should be paid in cash in a single day
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