Greetings,
can we pay credit instalments by way of cash payments to the creditors, if yes then what is limit of such cash payment and is the any limit for the credit which is obtained
8 Replies
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 11 October 2019
1. Yes, cash payments can be made to creditors provided the same is within the limit of Rs. 10,000.
2. If not, then as per sec 40A(3) the same will be disallowed while computing income tax liability.
3. So, the cash payment limit would be Rs.10,000 per day to a single person for a transaction.
Please correct me if the above solution has an alternative view.
sabyasachi mukherjee
(27574 Points)
Replied 11 October 2019
Sec 40A (3) disallows certain expenditure incurred by an individual for the purpose of business and profession subject to certain exceptions.
threshold limit is Rs.10000.
threshold limit is Rs.10000.
Umesh Sharma
(student)
(350 Points)
Replied 11 October 2019
Amount is limited to Rs. 10,000. per transaction per person
Sai Prabhu Narayanan
(Articled assitant )
(161 Points)
Replied 11 October 2019
Is there any limit for the credit obtained ?
Sai Prabhu Narayanan
(Articled assitant )
(161 Points)
Replied 11 October 2019
Is there any limit for the credit obtained ?
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 11 October 2019
1. There is no such limit for credit obtained with respect to IT.
2. Credit limits are based on an agreement between the parties.
3. No limit as such with respect to the IT act.
Please correct me if the above solution has an alternative view.
Kapadia Pravin
(17259 Points)
Replied 11 October 2019
@ Sai Prabhu
Cash payment limit is 10000/- per day per person for a transaction. - under 40A(3)
No such credit limit in so far as Income Tax is concerned.
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Cash payment limit is 10000/- per day per person for a transaction. - under 40A(3)
No such credit limit in so far as Income Tax is concerned.
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