Friday, April 21, 2017

limits on cash transactions

RESTRICTION ON CASH TRANSACTIONS
  • Limit for disallowance of business expenditure made in cash is reduced from Rs 20,000 to Rs 10,000 made to a person per day. (Limit of Rs 35,000 for payment made to transporters however continues)
  • Above dis allowance is extended on capital expenditure also by restricting depreciation and Capital Expenditure on R & D.
  1. If you have purchased a two wheeler by paying Rs 15,000 in cash and Balance Rs 30,000 in Cheque – Depreciation eligibility will be only on Rs 30,000/-
  • No deduction allowed for donation U/s 80G in excess of Rs 2000/- if  paid in cash.
  • Prohibition for accepting loan other than by A/c payee Cheque / Draft /ECS in excess of Rs 20,000/- continues (269SS).
  • Prohibition for repaying loan other than by an A/c payee Cheque / Draft /ECS in excess of Rs 20,000/- continues (269T).
  • W.e.f 01.06.2015 above restrictions extended to acceptance of advance towards sale of immovable property and repayment of such advance.

4 comments:

  1. We are registered trust can we receive donation of above two thousand in cash? If we receive above two thousand in cash what r the repercussions? What happens? Clarify.

    ReplyDelete
    Replies
    1. as per new rules, take donation through cheques/DD/Online transfer or related ways. It is safe and secure for your trust.

      Delete
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