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

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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)

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)

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)

28 September 2025 Good luck.....

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