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It is prepared taking into account different cases of expense disallowed (Learn more)

PARTICULARS Amount
Profit as per tally xx
Add  
Exp Disallowed like  
Depreciation As Per Companies Act xx
30% Of Expense On Which Tds Not Deducted xx
Personal Exp Charged To P& L xx
Illegal Exp Booked In P & L xx
Any Cash Payment > 20000 Of Any Expense Per Day xx
Any Loan Taken Or Repaid > 20000 In Cash xx
Income Tax/Wealth tax/Int On Tax/Penalty On Tax Shown As Exp/Deferred Tax xx
Section 43 B Expenses(Interest On Bank Loan/Bonus/Pf Not Paid Till Return Filing Date 30 Sept) xx
Any uncertain ed Provisions (Provision Made Without Any Basis E.G Prov For Bad Debts) xx
   
   
Less  
Exp Allowed Like  
 Depreciation As Per Income Tax xx
Exp Of Previous Year On Which Tds Deposited This Year xx
Section 43 B Exp Of Previous Year Paid This Year xx
   
   
Taxable profit xx
Tax xx
Surcharge xx
Total xx
Cess xx
Tax+Cess xx

Cash Payment Greater than 10000 Disallowed

Existing (Financial Year 2016 - 2017 or AY 2017-18)

  • Cash Payments > 20000 are disallowed under Section 40(a)
  • This applies to only OPEX (Operating Expenses)
  • Not applicable to CAPEX (Purchase of Fixed Assets)

New(Financial Year 2017 - 2018 or AY 2018-19)

  • Cash Payments>10000 are disallowed under Section 40(a)
  • In case of fixed assets(CAPEX) purchased in cash more than 10000, depreciation will not be charge on it.

 


Cash Receipt more than 3 Lacs not allowed

Section 269ST

No person can receive cash more than 3 lacs in following cases

  1. Total Cash Transactions per day to per party cant be more than 3 lacs
  2. Single Transaction cant be more than 3 lacs(even if paid in parts)
  3. Differen transactions relating to single event cant be more than 3 lacs

Penalty

It is equal to amount of contravention (Section 271DA)

Example:- If 4 Lacs received in cash,then 4 lacs will be penalty


Exception

Govt,Banks and Other Notified persons can receive amount more than 3 lacs

  1. Accounts and Finance
  2. Step 4 Balance Sheet Finalization Procedure
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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