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Payment in cash

Nilesh Rathore (indore) (96 Points)

09 September 2018

I had purchased goods from A and made payment in cash for Rs. 200000 in cash. Is it allowed ??? if not what are the compliances as per income Tax act??? also suggest if allowed what are its provisions???

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14 Replies

Durgesh Mourya (219 Points)
Replied 09 September 2018

Not Allowed,
You have to Pay Penalty.

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JAI BHOLA (504 Points)
Replied 09 September 2018

have you paid 2 lakhs in a day or different days ?

Durgesh Mourya (219 Points)
Replied 09 September 2018

That Doesn't matter, if payee and receiver is same, then Penalty Applies

JAI BHOLA (504 Points)
Replied 09 September 2018

section 40A(3) - more then 10000 in a day is not allowed
section 269ST - sale of more than 2lakhs in cash is not allowed

then Durgesh ji , on what grounds have you answered the query ?
and Nilesh ji , kindly tell me that whether the payments are made on a single day of different ? and even if on single date , then break the transaction into different dates in your books.

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Nilesh Rathore (indore) (96 Points)
Replied 09 September 2018

the payment is made on a single day...to a single person... without any deductions of TDS or TCS as applicable..

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RAJA P M ("Do the Right Thing...!!!") (128096 Points)
Replied 09 September 2018

Originally posted by : Nilesh Rathore
	the payment is made on a single day...to a single person... without any deductions of TDS or TCS as applicable..

That Expense is disallowed...

JAI BHOLA (504 Points)
Replied 09 September 2018

Yes , now the payment is disallowed , consult you CA he would definitely help you break the payment into different dates.

RAJA P M ("Do the Right Thing...!!!") (128096 Points)
Replied 09 September 2018

Originally posted by : RAJA P M
	Originally posted by : Nilesh Rathore the payment is made on a single day...to a single person... without any deductions of TDS or TCS as applicable.. That Expense is disallowed...