Cash transaction

RayChawdhuri (Querist) 26 September 2014 This query is : Resolved
Dear Expert,
Is there any rules regarding the Maximum Permissible limits of cash transactions between an Institution and a Building Contractor/ Suppliers of various items.
If there is please help with relevant Income Tax Act /Rules etc.
What are the penalties if any,if the rule is violated by the Institution.

Follow Query

Report Abuse

ajay sethi (Expert) 26 September 2014
academic query

BAALASUBRAMANNYAMM (Expert) 26 September 2014
Better to post your query at www.caclubindia.com

Anirudh (Expert) 26 September 2014
As per Section 40A(3) maximum cash payment for a person should not exceed Rs. 20000/-. If the cash payment in respect of a person exceeds Rs.20000/- for a day, then the same will not be allowed as deduction.

Rajendra K Goyal (Expert) 26 September 2014
Consult your tax adviser.

Raj Kumar Makkad (Expert) 02 October 2014
I do agree with Anirudh.

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

Ask Query
Unanswered Queries