Dear experts,
purchased for rs. 2 lakhs, splitted cash payment like 10,000 x 20 on different days - is it correct method or not, pls suggest
gaddala ramesh (163 Points)
13 August 2023
RAJA P M
("Do the Right Thing...!!!")
(127921 Points)
Replied 13 August 2023
RAJA P M
("Do the Right Thing...!!!")
(127921 Points)
Replied 13 August 2023
NARENDRA
(ACCOUNTS MANAGER)
(1756 Points)
Replied 21 September 2023
Apart from a wrong method but so many people moving on with this system .
RAJA P M
("Do the Right Thing...!!!")
(127921 Points)
Replied 21 September 2023
| Originally posted by : NARENDRA | ||
 |
Apart from a wrong method but so many people moving on with this system . |  |
Yes, So many people follow the way.
But, As per rule Cash Expenses not allowed 10k. The said rule wrongly understand by people and cash payment made 10k and multiple times in a bill...
Rule is cash expenses not exceeding above 10k and Cash payment also...
Yasaswi Gomes new
(Finance )
(4492 Points)
Replied 26 September 2023
The Income Tax Act's Section 40A(3) addresses the maximum amount of cash that can be exchanged in a transaction. According to Section 40A(3), the Tax Act of India will disallow any expenditure over ₹10,000 that is paid for in cash.
So they can pay in installments plus their working capital Will be healthy
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