the dealing is rupees 20000 in cash
2006-10-06 03:58:17 · 6 answers · asked by STM 1 in Business & Finance ➔ Taxes ➔ India
See there are many provision under the Income Tax Act which has relevance to receipt of payment of Rs 20000 in cash. These are as follows
1. If the payment is as business expenditure , the provision under Section 40A(3) of the I T Act that any payment above Rs 20000 by mode other than crossed cheque or bank pay order , 20% of such payment shall be disallowed.
There are some exceptions provided for this rule.
2. If you are receiving loan , Section 269 S bars , YOU CAN NOT do it. If you do , a penalty equal to loan amount shall be levied.
3. You can not repay loan or deposit in cash above Rs 20000, as per Section 269T of the I T Act.Penalty is again equal to the loan reapid in cash .
2006-10-06 06:55:15 · answer #1 · answered by q4tax 3 · 0⤊ 0⤋
Income department wants you to have only white money. Therefore it is better to make payment and receipts through cheques only.
The restriction of Rs 20000/- is meant for banks transaction.
In a Bank, transaction above Rs 20000/- is permitted through savings bank a/c only and not in cash.
2006-10-06 05:17:39 · answer #2 · answered by ♪¢αpη' ε∂ïß♪ ♥♥♥♥♥♥♥♥ 6 · 0⤊ 0⤋
when the sum is in thousands , never transact in cash , this is something that the court would not pay heed to as there would be no evidence to prove it , in case anything goes wrong . the best is to make a cheque and then present the money , but then in india no land is this cheap now that you can purchase it for rs 20000 , this amount is nothing . you cant even get a bike with this money forget about land
2016-03-18 05:48:14 · answer #3 · answered by ? 4 · 0⤊ 0⤋
What is most important to note is that the payments above Rs.20000/- in a financial year are liable to TDS in may cases and in the given cases you may be voilating TDS Rules.
2006-10-07 06:43:00 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Yes, if you come under tax audit u/s. 44, you should not pay or receive amount above rs.20000/- by cash, only a/c. cheque or d.d. should be given or taken except sales and purchases.
2006-10-06 16:04:01 · answer #5 · answered by gansabha 1 · 0⤊ 0⤋
well man .. as of the question of payment of rs.20000/- or more (if its not wage or salary payment or a statutory payent) then it will be dissallowed while computation of taxable profit.... but if itsa receipt its verymuch ok as the person who gave u has to suffer the consiquences.......
2006-10-06 05:04:38 · answer #6 · answered by dinesh k 2 · 0⤊ 0⤋
yes...there is a stipend you must pay to me. exchanged into Euros at a 4% proportion of the dealing. thank you.
2006-10-06 04:00:17 · answer #7 · answered by trinnersforwinners 1 · 0⤊ 0⤋