14 Points You Must Know After GST on CASH TRANSITIONS ?

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14 Points You Must Know After GST on CASH TRANSITIONS ?


Most of the people are worried about GST. But some more rules related to CASH transitions are more difficult dangerous and one should keep the same in mind before paying in CASH.

The 14 Points related to Cash Transitions are mentioned below:

  1. You can not accept cash exceeding Rs. 2 Lakhs in aggregate in a year in a DAY or for one occasion or, for one event or in one transaction. ( If you do, you will have to pay 100% of the amount Involved as penalty u/s 271DA)
  2. Payment of any expenditure exceeding Rs.10,000/- in a DAY is not allowed to be deducted from Business or profession income u/s 40A(3)
  3. Payments to transport operator for plying, hiring or leasing of goods carriage above Rs.35,000 is not allowed to be deducted from business or profession income u/s 40A(3)
  4. You can not receive any loan or deposit of more than Rs.20,000/- in CASH. This is as per section 269SS. If you accept, penalty is 100% of loan or deposit taken.
  5. If you received any loan or deposit, you can not pay back the amount of loan or deposit by cash. This is as per section 269T. In case of default, penalty of 100% of amount involved as per section 271E.
  6. Section 269SS prohibits acceptance of advance  in excess of Rs.20,000/- in a year for transfer of  immovable property. If you accept, penalty is 100% of the amount involved.
  7. As per section 43(1) Payment above Rs. 10,000/- for purchase of business asset can not be done in CASH. If done, then the amount will be reduced from cost of asset. That will reduce your claim of depreciation on assets.
  8. Investment linked deductions for capital expenditure can not be done in cash in excess of Rs. 10,000/- If you do, deduction u/s 35AD will not be allowed.
  9. Section 80D provides deduction for buying medical insurance. However, if you pay the premium in cash deduction can not be claimed. 
  10. Political parties cannot accept donation in excess of Rs 2,000/- in CASH as per section 13A of Income Tax Act.
  11. If anyone donates to funds or trust approved for section 80G, then donation in cash can not be more than Rs. 2,000/-. If you donate more than Rs.2,000.- in cash you can not claim deduction u/s 80G.
  12. Donation for research and rural development for deduction u/s 80GGA can not be in cash Exceeding Rs. 2,000/-
  13. Companies can not claim deduction u/s 80GGB for donation to political parties if they donate in cash .
  14. Individuals and others can not claim deduction u/s 80GGC for donation to political parties in cash


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1 Comments

  1. GST is an important significant of indirect taxes in our country. GST is multi stage value added tax on consumption of goods and service. It is essential to have transactional provisions to ensure the transition to the GST regime is very smooth and hassle free and no ITC in the existing regime are lost. https://123gst.com/gst-returns-filing/why-file-gst-returns-online

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