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
6 Replies
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 13 August 2023
It's not correct method...
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 13 August 2023
@ Mr Sabyasachi,
Are You reply to query...?
or
wrongly typed the msg with any...???
Are You reply to query...?
or
wrongly typed the msg with any...???
NARENDRA
(ACCOUNTS MANAGER)
(1994 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...!!!")
(128091 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 )
(4514 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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