one of the business it person sales turnover rs:150 lacs in f.y.20-21.cash on hand balance rs:20 lacs at the end of finical year March ending show in books as on dt:31-03-21.
question:
Cash on hand balance any limit provision applicable in it act.
As per income tax act no such kind of limit for holding cash.
In order to disincentivise cash transactions, it is proposed to amend the provisions of Section 40A of the Income Tax Act to provide the following: ... 10,000 in a single day i.e. any payment in cash above Rs. 10,000 to any person in a day shall not be allowed as deduction in computation of Income.
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