Cash transaction for purchase of goods, expenses what is the limite per day

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Quick Summary

In the UK, cash payments for business expenses and purchases generally have a limit of £10,000 per day per person to remain tax-deductible. A higher limit of £35,000 applies to payments made to transporters. Certain exceptions to these rules are also outlined.

ARCHANA

ARCHANA (Querist)
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17 May 2025 Sir/Mam,

What is the limit of cash paid for purchase of goods and Expenses

Please clarify my doubt

Thanking you

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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17 May 2025 As per Section 40A(3), any cash payment exceeding ₹10,000 in a single day to a single person for business expenses is generally not allowed as a tax-deductible expense. However, there is a higher limit of ₹35,000 for cash payments made to transporters. There are certain exceptions to this rule, as specified under the section.
Section 43: If a payment of more than ₹10,000 is made in cash for acquiring an asset, this expenditure will be disregarded when determining the actual cost of that asset for depreciation purposes.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 September 2025 Good luck.....

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