CASH TRANSACTIONS

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This discussion clarifies the rules surrounding cash transactions in India. It explains that while there's no daily limit on the number of cash purchases, accepting Rs 2 lakh or more in aggregate from a single person on one occasion violates cash transaction laws. For loan repayments, the total outstanding amount should not exceed Rs 20,000, with no specific limit on the number of individual repayments.

PARDEEP KAPIL

PARDEEP KAPIL (Querist)
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31 January 2020 DEAR SIRS :: (1) HOW MANY DAYS IN A YEAR CAN MR. A MAKE CASH PURCHASES OF RS.TWO LAKH.... TWICE A WEEK OR TWICE A MONTH........(2) HOW MANY TIMES IN A YEAR LOAN REPAYMENT IN CASH OF RS.20,000 CAN BE MADE.... REGARDS

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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31 January 2020 1 No such limit of number of days. Each occasion and each purchase is counted.
2 No such limit but total outstanding should not exceed 20,000.

PARDEEP KAPIL

PARDEEP KAPIL (Querist)
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31 January 2020 DEAR SIRS ::: FURTHER CLARIFICATION PLEASE :: I AM NOT JOKING 1) IT MEANS RS.2,00,000 CASH PURCHASES CAN BE MADE X 365 DAYS = 7,30,00,000 WITHOUT VIOLATING ANY PROVISION OF INCOME TAX ACT / LAWS.... 2) LOAN REPAYMENT AT RS.20,000 EACH DAY IN CASH CAN BE MADE X 365 = 73,00,000

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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31 January 2020 Accepting cash worth Rs 2 lakh or more in aggregate from a single person in a day or for one or more transactions relating to one event or occasion will lead to violation of cash transaction law.
Loan outstanding should not exceed 20,000.

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