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Income Tax - Article explains Section 40A(3) of Income Tax Act, 1961 read with Rule 6DD i.e. Cash Payment in excess of Rs. 10,000 to single person in a single day, Exception to Section 40A(3) of Income Tax Act, 1961 (Rule 6DD), Clauses omitted by the Income-tax (3rd Amendment) Rules, 2020 and Important Notes related to Section 40A(3) […]...
Read MoreIncome Tax - Krishna, Today is 13th October last day for the promotion of Elections. In the chaos of election, crores of rupees were ceased. During this period Election Commission has laid many restrictions on cash transaction. But what are the provisions of cash transactions under Income Tax Act?...
Read MoreIncome Tax - Under the existing provisions of the Act, revenue expenditure incurred in cash exceeding certain monetary threshold is not allowable as per sub-section (3) of section 40A of the Act except in specified circumstances as referred to in Rule 6DD of the Income-tax Rules, 1962....
Read MoreIncome Tax - A number of new provisions have been introduced in the Income Tax Act from time to time to put restrictions on cash transactions as well as to incentivise the non-cash transactions. Cash transactions have always played a major role in the Indian Economy and consistently were responsible for generation and accumulation of Black Money. The ...
Read MoreIncome Tax - E-BOOK: KNOW WHEN TO SAY NO TO CASH TRANSACTIONS Article explain Restrictions on Cash Expenditure (Capital & Revenue), Incentives to encourage cashless business transactions, Restrictions on Cash Loans, Deposits & Advances, Restrictions on Cash Transactions in Real Estate, Restrictions on Income Tax Deductions, Restrictions on C...
Read MoreIncome Tax - It is suggested that there should be a positive provision under the I.T. Act that any transaction involving more than Rs.3,00,000/– (Rupees Three Lacs) shall be invalid & illegal and would be a punishable offence, if amount is not paid by account payee cheque or account payee bank draft or use of electronic clearing system through a ban...
Read MoreVaduganathan Talkies Vs ITO (Madras High Court) - Revenue is right in contending that the genuinity of the transaction is hardly a matter, which should weigh in the minds of the Assessing officer while examining as to the whether the assessees had violated Section 40A(3) of the Act....
Read MoreK.K. Construction Co. Vs. ACIT (ITAT Jaipur) - K.K. Construction Co. Vs. ACIT (ITAT Jaipur) Conclusion: Dis allowance under section 40A(3) could not be made as identity of persons from whom purchases had been made was established; source of cash payments was clearly identifiable in form of withdrawals from assessee’s bank accounts and the said...
Read MoreNam Estates Pvt. Ltd Vs. ITO (Karnataka High Court) - Assessee couldn’t demonstrate with cogent evidences that there was business expediency or sufficient cause for such cash payment. Assessee failed to prove that the case was covered in the exception clause as provided under section 40A(3) read with Rule 6DD....
Read MorePCIT Vs Sumukha Synthetics (Madras High Court) - The issue under consideration is whether the disallowance under Section 40A(3) of the Act as made by the Assessing Officer is sustainable under Income Tax Act when banking facility was available but the bank account could not be operated by the very bank themselves because of an order of attachment ...
Read MoreM/s Ashok Motors Vs DCIT (ITAT Guwahati) - The issue under consideration is whether the addition u/s 40A(3) for advance which is returned back to the customer in cash is justified in law?...
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Vaduganathan Talkies Vs ITO (Madras High Court) -
K.K. Construction Co. Vs. ACIT (ITAT Jaipur) -
Nam Estates Pvt. Ltd Vs. ITO (Karnataka High Court) -
PCIT Vs Sumukha Synthetics (Madras High Court) -
M/s Ashok Motors Vs DCIT (ITAT Guwahati) -
Kalyan Lok Nirman (P) Ltd. Vs DCIT (ITAT Indore) -
