Amount receivable

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naveen prabhu (Querist)

06 February 2012 I am running an educational institute. What maximum amount at a time can i receive in cash from a student in terms of course fees at a time.I am told it should not exceed Rs.20000/-. Pl clarify

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

06 February 2012 The limit of Rs.20000 in cash is not applicable for the receipt. It is applicable to the payments and which has expenditure nature. In your case your are the receiver and the student/students's parents are the payers and the course fee etc.. paid for the education purpose doesn't allowable as expenditure for income tax purpose. However tuition fee paid is eligible to deduction under section 80C in the hands of parents but for this deduction the limit to payment in cash not applicable/effects. So for your case any amount at a time you can receive and the parents can pay.
OM SAI SRI SAI JAI JAI SAI

naveen prabhu

naveen prabhu (Querist)

07 February 2012 Thank you sir

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