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Cash payment limits

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(Querist)
12 May 2017 Sir, I have non audit firm. Then can I pay more than 10000 in one day to sundry creditors. What is the limit of cash payment in one year.
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CA Shubhanshu Jain

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CA Shubhanshu Jain (Expert)
12 May 2017 No, As per section 40A(3) cash payment of more than 10000 is not allowed whether firm is required to get its accounts audited or not.

and Cash payment limit towards an expense is always checked on daily basis and not on yearly basis and limit is 10000
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@VaibhavJ

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@VaibhavJ (Expert)
12 May 2017 Agree with expert..



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Studentsca

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Studentsca (Expert)
12 May 2017 Do not make cash payment exceeding Rs. 10,000/- to a single person in a single day. It will be disallowed.

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