sir....
please clarify cash limit 10000 wef 01-04-2018 or ?
In order to disincentivise cash transactions, it is proposed to amend the provision of section 40A of the Act to provide the following:
(i) To reduce the existing threshold of cash payment to a person from twenty thousand rupees to ten thousand rupees in a single day; i.e any payment in cash above ten thousand rupees to a person in a day, shall not be allowed as deduction in computation of Income from “Profits and gains of business or profession“;
(ii) Deeming a payment as profits and gains of business of profession if the expenditure is incurred in a particular year but the cash payment is made in any subsequent year of a sum exceeding ten thousand rupees to a person in a single day; and
(iii) Further expand the specified mode of payment under respective sub-section of section 40A from an account payee cheque drawn on a bank or account payee bank draft to by an account payee cheque drawn on a bank or account payee bank draft or use of electronic clearing system through a bank account.
These amendments takes effect from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018- 19 (FY 2017-18) and subsequent years.
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