Cash exp.

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Bhavnesh hadiyel

Bhavnesh hadiyel (Querist)

05 October 2013 how much cash payments should be given in a day for cash expenses.

Guest

Guest (Expert)

05 October 2013 maximum 20000/day in general and 35000/day to transporter,subject to exceptions of rule 6DD.like if the payment is made to government/RBI/SBI or any of its subsidary or payment is made for some forest and agricultural produce or on account of bank holiday.
For more information,go through this link
https://www.simpletaxindia.net/2009/12/payment-exceeding-20000-40a3-exceptions.html

CA Pallav Singhania

CA Pallav Singhania (Expert)

05 October 2013 Agree with Expert,

As per Sec 40{a}3 of the IT Act..
Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds {20000} twenty thousand rupees, no deduction shall be allowed in respect of such expenditure.

Ganeshbabu K

Ganeshbabu K (Expert)

07 October 2013 1)No cash payment should be made more than 20000 for single person in a single day..(for payment of frieght for goods in business allowed up to 35000)
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Kindly refer to Exceptions to Rule 6DD for Exceptions in a case where cash payments will be allowed

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