CURRENT AFFAIRS

Detailed explanation-1: -According to the department, cash transactions are occasionally forbidden and might get you in trouble. Accepting cash payments of ₹20, 000 or more in exchange for a loan or deposit is against the law; all such transactions must follow banking protocols.

Detailed explanation-2: -Certain types of Cash transactions have serious consequences. Certain types of Cash transactions have serious consequences. No person is permitted to accept Rs. 20, 000 or more in cash a) for any loan or deposit or b) any amount in relation to transfer of any immovable property (even if transfer does not take place).

Detailed explanation-3: -As per section 40A(3), if the business expenditures are made in cash and the amount exceeds Rs 10, 000 then it will be disallowed for income tax purposes. There are certain exceptions to this rule as well. The detailed provisions have been explained in this guide further.

Detailed explanation-4: -The limit remains the same even if a seller accepts an advance. When it comes to self-employed taxpayers, they cannot claim any expenditure over ₹ 10, 000 if it’s paid in cash to a single person in a single day. The law establishes a higher threshold of ₹ 35, 000 for payments given to a transporter.