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Capital investment in firm by way of cash

D.Srinivasulu (B.SC) (201 Points)

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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10 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 24 April 2021

You can pay cash 10000 rupees in a day

Prathyusha Varma (ArticleShip) (393 Points)
Replied 24 April 2021

Capital investments there is no limit but you need to proof the source of income for investing

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D.Srinivasulu (B.SC) (201 Points)
Replied 24 April 2021

Please more information regarding capital investment in firm by way of cash per day

Prathyusha Varma (ArticleShip) (393 Points)
Replied 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

D.Srinivasulu (B.SC) (201 Points)
Replied 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

Prathyusha Varma (ArticleShip) (393 Points)
Replied 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).

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 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

CMA Poornima Madhava (CMA) (13097 Points)
Replied 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.

SUSHANT BIDAYE (578 Points)
Replied 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.