Limit of cash payment

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This query is : Resolved

TARIQUE RIZVI (Querist)

02 June 2018 What is the limit of cash payment as fixed by the income tax department for the financial year 2017-18 and fy 2018-19. ? I presume that it must be 10,000 or 15,000 ? I would like to cfm it only.

CA Himanshu Ojha

CA Himanshu Ojha (Expert)

02 June 2018 Payment of above Rs 10,000 per person, can not be made for any business payment towards any expenses (or) purchase of capital asset.

CA Suresh Jain

CA Suresh Jain (Expert)

02 June 2018 w.e.f. FY 2017-18, payment for expenses not only in cash but otherwise than by an account payee cheque drawn on a bank or account payee bank draft or use of electronic clearing system through a bank account to a person in a day more than 10,000.00, no deduction shall be allowed. The amount of 10k is increased to 35k in case of payment made for plying, hiring or leasing goods carriages. In case of capital goods such payments shall be excluded from the calculation of Actual cost of the Assets.

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