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.
- 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.