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Cash transaction

Sudarshan Sarda (CHARTERED ACCOUNTANT) (241 Points)

24 March 2017

WHETHER THE LIMIT OF CASH TRANSACTION OF RS.200000/- IS APPLICABLE TO RECEIVER OR GIVER?? ALSO IF PERSON CONSTRUCT HIS HOUSE THEN LABOUR PAYMENT ABOVE 200000/- CAN BE MADE FROM CASH OR NOT??

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CA VIRAL SANGHVI (Finance head) (681 Points)
Replied 24 March 2017

Restriction on cash receipts of Rs. 2 lakhs or more on a single day from a single person or transaction relating to one event though insertion of new Section 269ST

WHETHER THE LIMIT OF CASH TRANSACTION OF RS.200000/- IS APPLICABLE TO RECEIVER OR GIVER?? ALSO IF PERSON CONSTRUCT HIS HOUSE THEN LABOUR PAYMENT ABOVE 200000/- CAN BE MADE FROM CASH OR NOT??

ANS. Restriction on cash receipts of Rs. 2 lakhs or more on a single day from a single person or transaction relating to one event though insertion of new Section 269ST

You can not pay Rs.2 lakh by cash as section 40 (a)(3) is not permitting to pay the amount more than Rs.10,000/- on a single day.

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