According to income tax act if someone is paying amount more than 10000 in cash for purachse done it won't be consider as expenditure in profit and loss account. But according to sec 44ad there is no need to maintain account and profit is considered as 8 percent of gross sale .. so person opting for 44ad can pay in cash for the purchase of amount more than 10000 as there is not any requirement for maintaing accounts..? And also according to sec 269st one cannot receive more than 2 lakh in cash but what if cash received is from brother by exectuing proper gift deed ... amount of cash is 10 lakh.. can i receive it without penalty as he is not ready to give in cash
Yes a person can make payment of ₹10000 and it won't be disallowed.
However you can't receive cash more than 200000 otherwise you will have to penalty u/s 271DA.
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- Sec.44AD is applicable notwithstanding sec.28 to 43C but still avoid cash payments.
- Not allowed to receive cash exceeding Rs.2 lacs.
Yes u can pay more than 10000 rs in cash if u r filling your income tax return u/s 44AD beacuse this section overrides section 40 A (3) of income tax act and various other sections also.
and u can't receive more than 2 lacs in cash whether it is with or without executing proper gift deed.
Hope you find solution to your problem, if u require any further detail plz let me know.
Dear Sir,
Hope you are doing well !!
- Yes, you can take the benefit of the section 44ad.
- No, it is not allowed. You can't accept more than 2lakh in cash.
Hi,
1. Since you are filing return u/s 44AD, you can incurred cash expenses in excess of 10k. However, please note that larger cash transaction would catch tax department's attention and you may be questioned. But, you can clarify your position.
2. No, you can't receive gifts in excess of 2 lacs in cash. Penalties are applicable even if this situation.
I asked u few days ago about the cash gift i can receive 10 lakh from my brother and asked if its legal without penalty and know u all r saying that cash beyond 2 lakh attracts penalty than why all of u didn't tell my that tym...?
Cash gifts are not allowed u/s 269ST as I have already mentioned in my answer.
Hi,
Under the income tax law, as we all know gifts received from 'relatives' are exempt without any upper limit. This means that a person can receive gift of any amount from a relative as defined under section 56. But with the introduction of section 269ST one limitation is imposed on cash gifts received even from relatives to the tune of less than Rs. 2 Lakhs in respect of single event or occasion.
No, cash receipts of more than Rs. 2 lacs is not allowed.