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Income Tax - In order to restrict cash transactions, the government has come out with several provisions and related rules to prohibit various types of cash payments in the Finance Acts. The effects of restrictions under provisions of income tax act are as follows: Restrict cash transactions by disallowances of expenses or deduction under chapter VIA ...
Read MoreIncome Tax - CGST Act 2017 has no provision restricting cash transactions, but In order to, curb black money ,the government has imposed various restrictions on cash receipts /payments and cash withdrawal from time to time through Income Tax Act 1961. The Government has amended clause 84 of Section 194N vide Finance Act 2020 . Accordingly TDS @ [&he...
Read MoreIncome Tax - Gradually, the Indian Economy is getting digitalized and ultimately moving towards a cashless economy. Electronic transactions ensure a clear money trail and make it very difficult for tax evaders. In a bid to curb black money as well as limit the number of cash transactions, the Government from time to time has introduced many new [&hell...
Read MoreIncome Tax - Treatment of expenditures incurred by an assessee in excess of Rs. 20000/- (wef A.Y. 2018-19 Rs 10000/-) in cash or bearer cheque under section 40(A)(3) of the Income Tax Act, 1961...
Read MoreIncome Tax - Private healthcare sector: Income tax incentives, Legal Provisions and Judgments This article covers various sections related to healthcare sector such as Section 10(23C), Section 44A, Section 44AB, Section 11, Section 12, Section 35AD, Section 194I, Section 194h, Section J and many more along with various related case laws. Legal Provisi...
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 MoreM. K. Agrotech Private Ltd Vs ACIT (Karnataka High Court) - M. K. Agrotech Private Ltd. Vs ACIT (Karnataka High Court) The main purpose of crossing a demand draft is to ensure that the payment is cleared by means of an account, i.e., the payment is deposited in the Bank Account i.e the person in whose favour the demand draft has been drawn. It ensures the [&...
Read MoreKempsz Trading Pvt. Ltd. Vs DCIT (ITAT Bangalore) - The assessee is engaged in the business of quarrying, processing/selling exporting of a granite block and slabs....
Read MoreNew Kalpana Ent Udyog Vs ITO (ITAT Agra) - he auditors in their tax audit report have also not mentioned of any violation of provisions of section 40A(3), as these payments have been made on account of business expediency where insistence of cash by the agents and truck drivers has been established by the appellant....
Read MoreKrishnasa Bhute Vs ITO (ITAT Bangalore) - Krishnasa Bhute Vs ITO (ITAT Bangalore) ITAT held that when considering Rule 6DD(e)(i) of the Income Tax Rules, 1962, and when the payment was made by cash exceeding Rs. 20,000/-, it was permissible if the same was paid for purchase of agricultural produces. If there are entries in the books of acco...
Read MoreSurya Merchants Ltd. Vs DCIT (ITAT Delhi) - Cash payments in excess of Rs. 20,000 made on bank/public holidays towards purchase of construction materials in the activity of real estate development could not be subjected to disallowance under section 40A(3) in view of rule 6DD(J)....
Read MoreM. K. Agrotech Private Ltd Vs ACIT (Karnataka High Court) -
Kempsz Trading Pvt. Ltd. Vs DCIT (ITAT Bangalore) -
New Kalpana Ent Udyog Vs ITO (ITAT Agra) -
