07 February 2017
Sir
In the budget it was announced that maximum cash transaction allowed is Rs.3lakhs
what does this mean.. They have already said maximum onetime payment allowed is Rs.10000
then for which transaction is this referred
please clarify
kiran
08 February 2017
As per section 43(A)(3), any cash payment made for any expenditure to any person per day which exceeds rs. 20,000 is disallowed under the said section. Union budget 2017 has reduced this limit to Rs. 10,000/-. So, from A.Y. 2018-19 onward any cash payment made above Rs. 10,000/- will be disallowed.
Now, cash payment limit of Rs. 3,00,000 is a cash payment limit for any transaction which may be business related transaction or non-business related transaction. For example, from F.Y. 2017-18 onward, no one will be able to buy Jewellery of Rs. 3,00,000/- against cash payment.
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