Celebrate Freedom and save 20% OFF on CAclubindia Pro Subscription! Use code: FREEDOM20

Cash transactions for money lender

Kollipara Sundaraiah (B.com) (2963 Points)

19 December 2020

Assess maintained a small money lending business.asses cash paid to customer Rs:40,000/- cash mode payment
question:
Assess cash mode payment allowed in I.t. act.

Reply
Follow
Share

6 Replies

ayusmita (Tax consultant) (5885 Points)
Replied 19 December 2020

Yes allowed but it's better to bank to bank if such transactions arises as it will be good for future

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Kollipara Sundaraiah (B.com) (2963 Points)
Replied 19 December 2020

Any limit for cash transactions to customer amount pay

ayusmita (Tax consultant) (5885 Points)
Replied 19 December 2020

If a person is doing business or in proffession then a daily limit of 10000 in cash payment to a single person beyond it then he or she cannot get any deductions on the expenses as per incometax
to a transporter you can pay 35000 in cash in a day
when you repay or accepting loan or money then 20000
deduction under 80D upto 5000 in cash
donation upto 2000
as per the section 269ST no person shall receive an amount of 2 lakh or more in a day be in bank to bank or cash

1 Like