Transaction limit
This query is : Resolved
18 September 2017
Hello sir/madam, I am confused about cash transaction limit for business. Plz help me in this problem
18 September 2017
You can't receive more than Rs.200000/- for one transaction in a day with single person.
Also no deduction for expenses allowed if you pay more than Rs.10000/- in cash.
Message likes :
1 times
18 September 2017
What if I pay cash for bills more than 10000. Will there be any problem.
02 August 2025
Great question! Here’s a quick breakdown:
* **If you pay more than ₹10,000 in cash for any expense**, that expense **won’t be allowed as a deduction** while computing your taxable income. This is under Section 40A(3) of the Income Tax Act, aimed at discouraging large cash transactions.
* Also, **cash receipts from a single person exceeding ₹2,00,000** in a day are disallowed under Section 269ST (to curb black money).
So, paying bills over ₹10,000 in cash can lead to **disallowance of that expense** for tax purposes, which means your taxable income might increase.
**Best practice:** Try to make payments over ₹10,000 through banking channels (cheque, NEFT, UPI, etc.) to avoid these issues.
* **If you pay more than ₹10,000 in cash for any expense**, that expense **won’t be allowed as a deduction** while computing your taxable income. This is under Section 40A(3) of the Income Tax Act, aimed at discouraging large cash transactions.
* Also, **cash receipts from a single person exceeding ₹2,00,000** in a day are disallowed under Section 269ST (to curb black money).
So, paying bills over ₹10,000 in cash can lead to **disallowance of that expense** for tax purposes, which means your taxable income might increase.
**Best practice:** Try to make payments over ₹10,000 through banking channels (cheque, NEFT, UPI, etc.) to avoid these issues.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Section 270A penalty
- GST Registration Application -Rejected
- GSTR 9C- Table 9
- International transfer pricing- -> father entity vs son entity ->WHERE NO mutual say in management
- Tax liability on gift amount given to blood relation
- Gst registration rule 14A
- Query on solved queries
- Reimbursement of expense- GST applicable or not
- When was the effective CA partnership deed? Can I use old FRN until new FRN alloted by ICAI?
- Form 104 stamp paper deed
- PLACE OF SUPPLY FOR COMMISSION AGENT
- Transport service POS
- E INVOICE, E-WAY, INVOICE
- GST RATE ON CONSTRUCTION BRICKS ?
- To Whom the Invoice should be Raise to
- E stamp paper purchase
- Problem in filing Returns for International workers in EPFO
- Clarification for reversal of IGST on transfer of duty-free imported goods from EOU to DTA unit
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
Trending Online Classes
-
Live Course on GSTR 9 & 9C for FY 24-25(Detailed discussions, FAQ, Case studies and Live demo of GSTR 9/9C on GST Portal)
Industry Expert16 November 2025
CAclubindia
