cash payment limit for f.y.2017-18

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.

These amendments takes effect from. 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018- 19 and subsequent years
means f.y.2017-18 also cash limit 10000 or 20000

Originally posted by : chandra
	These amendments takes effect from. 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018- 19 and subsequent yearsmeans f.y.2017-18 also cash limit 10000 or 20000

It's applicable from AY 2018-19 then it's FY 2017-18...

Limit Rs. 10000 

Section 40A(3)(a) of the Income Tax Act provides that any expenditure incurred in respect of which payment is made in a sum exceeding Rs. 10,000/- in a single dayotherwise than by an account payee cheque drawn on a bank or by an account payee bank draft or through use of electronic clearing system, shall not be allowed as a deduction