Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Cash transaction

jayesh (accountant) (361 Points)

05 October 2011

in the case of transportor, limit of cash payment of one day is_________

Reply
Follow
Share

11 Replies

*RENU SINGH * (✩ §m!ℓ!ñġ €ม€§ fℓม!ñġ ђ♪gђ✩ ) (21627 Points)
Replied 05 October 2011

35000

Upgrade to CAclubindia Pro. Subscribe Now!

Devendra (Chartered Accountant) (4775 Points)
Replied 05 October 2011

The cash payment limit has been increased from Rs. 20000/- to Rs. 35000/-.

Regards,

Devendra k

CA Rajat Jain (CA) (1677 Points)
Replied 05 October 2011

yaah increased from 20000 to 35000

Sachin Rajput (account exe) (593 Points)
Replied 05 October 2011

to everyone case or only for transportor

Devendra (Chartered Accountant) (4775 Points)
Replied 05 October 2011

In case of other than transporter, the limit is Rs. 20000/-.

Upgrade to CAclubindia Pro. Subscribe Now!

CA Ankit Shah (Service) (233 Points)
Replied 05 October 2011

Cash payment

For transporter : < 35000

Other than to transporter : < 20000 ( as earlier)

diganta chakraborty (advocate) (27 Points)
Replied 06 October 2011

pleale, inform me which is the supporting documents of incresing cash transection limit.

Devendra (Chartered Accountant) (4775 Points)
Replied 06 October 2011

Enhancement of limit for disallowance of expenditure made in the case of transportersUnder the existing provisions of the Income-tax Act, where an assessee incurs any expenditure, in respect of which payment in excess of Rs 20,000 is made otherwise than by an account payee cheque or account payee bank draft, such expenditure is not allowed as a deduction. Given the special circumstances of transport operators for incurring expenditure on long haul journeys, it is proposed to raise the limit of payment to such transport operators otherwise than by an account payee cheque or account payee bank draft to Rs 35,000/- from the existing limit of Rs 20,000/-. For this purpose a new proviso is proposed to be inserted after the proviso in sub-section (3A) of section 40A of the Income-tax Act. The existing limit for other categories of payments will remain at Rs 20,000/- subject to the exceptions declared in Rule 6DD of the Income-tax Rules. The proposed amendment will apply to transactions effected on or after the 1st October, 2009. [Clause 16]