Capital investment in firm by way of cash

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B.SC
202 Points Posted on 24 April 2021
hai gd mng to all,
I am one of the partner in firm, what is the limit to invest capital by way of cash in firm daily.
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On 24 April 2021 at 10:23 Report
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This discussion clarifies the limits on investing capital into a firm via cash. While there's a general daily limit of ₹10,000 for cash payments and a ₹2 lakh limit for cash receipts under Section 269ST, these restrictions do not typically apply to capital contributions to a firm, provided the source of income can be clearly demonstrated. However, differing opinions suggest Section 269ST might still apply to capital contributions, making the ₹2 lakh limit relevant regardless of income source.

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Chartered Accountant
24588 Points Posted on 24 April 2021
You can pay cash 10000 rupees in a day
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On 24 April 2021 at 10:53
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ArticleShip
393 Points Posted on 24 April 2021
Capital investments there is no limit but you need to proof the source of income for investing
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On 24 April 2021 at 11:17
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B.SC
202 Points Posted on 24 April 2021
Please more information regarding capital investment in firm by way of cash per day
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On 24 April 2021 at 11:22
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ArticleShip
393 Points Posted on 24 April 2021
Please elaborate your query , Here you are not making any payment. for making cash payments we have limit in income tax act but for making capital investments we don't have any limit but if investment is high you need to prove the source of income. Cash payments limit is 10k per day
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On 24 April 2021 at 11:28
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B.SC
202 Points Posted on 24 April 2021
Madam prathyusha varma so we have to invest in firm for capital per day Rs 10000/-cash only, but some are told Rs 200000/_ cash per day
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On 24 April 2021 at 11:47
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ArticleShip
393 Points Posted on 24 April 2021

Srinivas Garu, that is different. 200000 is for cash receipts. Please refer sec 269ST for more info.

 

Cash payments section 40A(3).

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On 24 April 2021 at 11:59
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Chartered Accountant
24588 Points Posted on 24 April 2021
200000 rupees you can Received in cash in a single transaction in a single day u/s 269ST other than online mode of receipts
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On 24 April 2021 at 12:19
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CMA
13117 Points Posted on 24 April 2021
Originally posted by : D.Srinivasulu
hai gd mng to all, I am one of the partner in firm, what is the limit to invest capital by way of cash in firm daily.

There is no such limit as far as capital contribution to the firm is concerned if the source of income is clear. Restriction on cash receipts (2 lacs limit) and on cash payments (10K limit) is not applicable in case of capital contribution to the firm.

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On 24 April 2021 at 13:39
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721 Points Posted on 24 April 2021
I feel 269 ST is squrely applicable for capital contribution in firm as this is not covered in the exceptions.

so the limit of Rs. 2 lakhs will be applicable whether the source can be explained or not. My views.
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On 24 April 2021 at 19:17
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Chartered Accountant
24588 Points Posted on 25 April 2021
Yes in this both receipts and payments conditions are applicable if made in cash
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On 25 April 2021 at 06:11

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