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cash payment

ganesh (student) (54 Points)

21 November 2018

Cash payment for purchase of immovable property in small Town for residential house.if any restrictions please provide details?

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rama krishnan (12234 Points)
Replied 21 November 2018

there's no restrictions for cash payments. only the seller has restrictions

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PUSHP KUMAR SAHU (CA FINAL ASPIRANT) (3115 Points)
Replied 22 November 2018

sir ,there is a restriction...in case if transaction amount exceeds 200000 INR ...it will conflict the provsions of section 269ST and there will be 100% penalty u/s 271DA

rama krishnan (12234 Points)
Replied 22 November 2018

@ Sahu 269st restrictions are in respect of sellers and for any purchase, either capital or revenue, the cash payments shouldn't exceed 10000

Nitesh bind (Student CA Final ) (12692 Points)
Replied 22 November 2018

There is restriction on Cash payment as follows:

1. If cash payment is made for any CAPITAL EXPENDITURE Or for 35AD assets to a SINGLE PERSON in a Day Exceeding Rs. 10,000/- then it shall be Disallowed under section 40A(3).

[Amended as per FA 2017]

2. RESTRICTION FOR RECEIVER (Seller):

The seller can also not RECEIVE amount in cash exceeding Rs. 2,00,000 u/s 269ST and if he receives then he would be liable to penalty under section 271DA equal to amount received.

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