CASH RECEIPT MORE THAN RS. 2 LAKHS 269ST

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This discussion clarifies the rules around cash transactions exceeding Rs 2 lakhs in India. It confirms that the Rs 2 lakh limit for cash receipts applies per transaction, not on a yearly basis. Therefore, receiving Rs 1.5 lakhs in cash for one sale and Rs 75,000 for another separate sale does not automatically trigger the need to file SFT Form 61A, as each individual cash receipt is below the threshold.

NIRMAL DAVE

NIRMAL DAVE (Querist)
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02 October 2023 Dear Experts,

I have made debit sale of Rs. 3,50,000/- on 20.09.2023 to a person against which I purchased old goods worth Rs. 50,000/- from him. He paid remaining Rs. 1,50,000/- in cash and Rs. 1,50,000/- through NEFT on 24.09.2023 and thus on 24.09.2023 his account is settled in my books of accounts.

Now can I again sale him goods worth Rs. 75,000/- on 02/10/2023 and received cash against the same bill?

Thanking You
Nirmal Dave

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 October 2023 Yes, it's an another sale.

NIRMAL DAVE

NIRMAL DAVE (Querist)
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02 October 2023 Thank You Sir.

One More Query:
Do I need to file SFT form 61A for the above mentioned transaction?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 October 2023 No need as cash receipt less than 2 lacs.

NIRMAL DAVE

NIRMAL DAVE (Querist)
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03 October 2023 Sir, Such Cash transaction limit is to be seen transaction wise or yearly basis for applicability of Form 61A. As in above case cash receipt is Rs. 2,25,000 (Rs. 1,50,000+Rs. 75,000) in a Year.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 October 2023 It's not based on year.
It's based on each sale.

NIRMAL DAVE

NIRMAL DAVE (Querist)
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03 October 2023 Thank You Sir for your valuable advise.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 October 2023 You are welcome...
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