Business rental advance cash mode limit

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This query is : Resolved

Quick Summary

This discussion addresses the permissibility of paying a rent advance of Rs 10 lakh entirely in cash, spread over multiple days. The core question is whether such a payment complies with the Income Tax Act's limits on cash transactions. The consensus is that while daily cash payments might seem permissible, the Act generally restricts cash transactions above certain thresholds, especially for a single event like a rent advance, making this large cash payment likely disallowed.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)
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25 December 2021 Sir,
One of the it person rs:10 lacs rent advance balance amount show in books as on Dt:31-03-21.if assessee rs:1 lacs *10 different dates total rs:10 lacs payment through on cash mode.
Question:
1.assessee payment cash mode allowed in it act
2.payment cash mode limit in it act.