Rent and security deposit paid in cash

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Gauri S Jaipal

Gauri S Jaipal (Querist)
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29 June 2016 Can we pay rent and security deposit in cash. Security deposit is Rs 40,000 and Rent is Rs. 10,000 pm?

Rupesh Jain

Rupesh Jain (Expert)
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29 June 2016 you can make below Rs. 20000/- in a day to a person. if you doing business then this exp. will not allowed you are paying Rs. 10000/- PM rent then no problem.

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Saket Jain

Saket Jain (Expert)
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29 June 2016 the person receiving deposit in cash will be liable under 269SS. You can pay deposit and rent in cash provided rent payment does not exceed 20000/- if you are using premises for business purpose and claiming expenses. If you use premise for residential purpose then no such limit for rent paid.

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Gauri S Jaipal

Gauri S Jaipal (Querist)
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29 June 2016 Thanks
Tenant is Pvt ltd co. So in case of security deposit in cash rs 40,000 any issue regardng income tax and company Act

Gauri S Jaipal

Gauri S Jaipal (Querist)
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29 June 2016 Landlord is individual

Saket Jain

Saket Jain (Expert)
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30 June 2016 Landlord is receiving deposit thus he may be liable. In companies act there is no restriction.

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