Re: cash payments

This query is : Resolved

Harshavardhan (Querist)
Follow

02 May 2012 Dear Experts

I have own two companies both are under proprietorship. Can u please give me the cash transaction limit per day between two companies..

Thx & Rgs

Harsha

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

11 May 2012 If the payment is made against an expense then the provisions of Section 40A(3) have to be complied with and accordingly the limit is Rs. 20,000/-.

If the payment is for loan or repayment of loan then provisions of Section 269SS and Section 269T have to be complied with and the limit is Rs. 20,000/- for the whole year.