Cash limit
NITIN DALSANIA (84 Points)
10 November 2020
how much can i pay cash payment to my creditors in a year
3 Replies
Shivam RC
(Student)
(23683 Points)
Replied 10 November 2020
1). CASH PAYMENTS :
As per the Provision of Section 40A(3) of the Income Tax Act 1961, A person can pay a maximum of Rs. 10,000 per day to per person in "CASH". If the Cash payment exceeds Rs. 10,000 in a day, then you will not be allowed to claim deduction of that particular expenditure in your P&L A/c [ PROFITS AND GAINS FROM BUSINESS OR PROFESSION HEAD ]. There is no Year limit. The limit prescribed under the Law is "per day."
2). CASH RECEIPTS :
As per the Provision of Section 269ST of the Income Tax Act 1961, No person shall receive an amount of "Two lakh rupees" or more :
(a). in aggregate from a person in a day; or
(b). in respect of a single transaction; or
(c). in respect of transactions relating to one event or occasion from a person,
otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account.
As per the Provision of Section 40A(3) of the Income Tax Act 1961, A person can pay a maximum of Rs. 10,000 per day to per person in "CASH". If the Cash payment exceeds Rs. 10,000 in a day, then you will not be allowed to claim deduction of that particular expenditure in your P&L A/c [ PROFITS AND GAINS FROM BUSINESS OR PROFESSION HEAD ]. There is no Year limit. The limit prescribed under the Law is "per day."
2). CASH RECEIPTS :
As per the Provision of Section 269ST of the Income Tax Act 1961, No person shall receive an amount of "Two lakh rupees" or more :
(a). in aggregate from a person in a day; or
(b). in respect of a single transaction; or
(c). in respect of transactions relating to one event or occasion from a person,
otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account.
Recent Topics
- GST registration -notice
- GSTIN Suspended Form GST Reg 17
- Request for GST Clarification regarding ITC
- Is Capital Gain exemption available for Property a
- EPF CONTRIBUION BY EMPLOYER
- Letter of credit -seller procedure
- Filling form 26 QB
- RPT AND ITC ISSUE
- Tax Liability and ITC Summary related Issues
- REQUIRED FORMAT FOR AMENDMENT TO PARTNERSHIP DEED
Related Threads
CAclubindia
