hi...
can i cash purchase more than Rs.20000/- or not according to income tax.
5 Replies
Madhu Hegde
(article assist)
(62 Points)
Replied 21 February 2013
No, you cant purchase from cash which is more than Rs.20,000/- as per IT Act,bcz same transactions are disallowed as expense while calculating the tax laiability
CA Raviteja
(Risk Management)
(585 Points)
Replied 21 February 2013
Cash expenditures (including purchases) made above Rs.20,000/- will be disallowed u/s 40A(3) of IT Act. However, there are certain exemptions like if u purchase of agricultural produce, fish products etc.
But in general, the above disallowance applies to all.
If u do cash payment to different persons, each less than rs.20,000/-, it is okay.
Madhu Hegde
(article assist)
(62 Points)
Replied 21 February 2013
k nice Sir,broadly i had rpld to that quiry..
CA Raviteja
(Risk Management)
(585 Points)
Replied 25 February 2013
ofcourse madhu, you are correct. i didnt say u are wrong... i just added few lines... :)
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