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unregistered purchase
if I m purchasing goods from a farmer in April and I want to make him the payment of rs 180000.. after 4-5 months can i do it in a single payment or part of payments... what is the limit for making a payment to an unregistered person in a single day?
Replies (2)
as it is an agriculture purchase it doesnt attract 40a(3) limit....and 1.8 lacs is vth the limit of 269st ....so obviously u can make the payment in cash.....
If you are purchasing agricultural produce from the farmer, then you can make the payment in one go because Rule 6DD(e) of the Income-tax rules exempts such payment from the daily cash limit.
Otherwise 10K per day as per Sec. 40(A)(3) because it says “…any expenditure…”
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