Cash accepting

we are into business of Automotive and Industrial Lubricants trading.

We had accepted cash from sales of good greater that 2 lacs and upto 10 lacs from single transaction in FY 2014-15. Were these allowed in FY 2014-15 or was there some kind of restriction even then?
Asked 1 month ago in Income Tax from Hyderabd, Telangana
Receiving money in cash as sales has no restriction. As per Income tax ACT, you wont be allowed as deduction in purchases if you have paid in cash more than 20000 for said financial year
Vidya Jain
CA, Kolkata
420 Answers
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Hello,

The restrictions were there even then.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP
Rohit R Sharma
CA, Mumbai
1900 Answers
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There was no restriction on cash sales during the FY 2014-15. However, the return for the FY 2014-15 relevant to the assessment year 2015-16 should have been filed latest by 31st March 2017.Hope you filed the return.
B Vijaya Kumar
CA, Hyderabad
767 Answers
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Hi

The cash acceptance rules for sales are new and were not in force in FY 2014-15.

Is this a general question or you have received some kind of notice for such transaction?
Lakshita Bhandari
CA, Mumbai
700 Answers
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Hi, the new Section 269ST which restricts receipt of Cash up to Rs. 2 Lakh was introduced only with effect from 1-Apr-2017
Pradeep Bhat
CA, Bengaluru
367 Answers
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Hi,

The mandate to obtain details of PAN was only from 2016. So long as you have paid tax on the cash receipts, it should not be a problem.

Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
Keerthiga Padmanabhan
CA, Greater Mumbai
688 Answers
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