parasuram (Manager Accounts) (41 Points)
13 September 2019Dear Sir,
One of our client wants to deposit Rs.5,00,000/- by CASH in our Bank OD account against the material.
Will there be any problem we have to face if so much big amount is deposited in CASH.
What is the limit. What suggestion you will give in this regard
parasuram
(Manager Accounts)
(41 Points)
Replied 13 September 2019
What is the limit of such deposit?
debora M
(BUSINESS DEVELOPMENT MANAGER)
(1697 Points)
Replied 13 September 2019
Different Types of overdraft accounts have diverse eligibility criteria for the facility and some of those norms are mentioned here:
Overdraft against Salary: Salary accounts opened by the businesses for their employees are eligible for this facility. The minimum requirement for availing overdraft facility in a salary account is to have regular monthly salary credit by the company and the company is in the approval list of the bank.
Features:
parasuram
(Manager Accounts)
(41 Points)
Replied 13 September 2019
Dear Debora M
May I know if your answer relates to my query??
If Yes, seems irrelevant reply.
debora M
(BUSINESS DEVELOPMENT MANAGER)
(1697 Points)
Replied 13 September 2019
In Budget 2017-18, a ban on cash transaction of more than Rs 3 lakh has been proposed. The same has been mentioned in the Finance Bill 2017. But, the Govt of India has made amendment in Finance bill and has reduced the Cash transaction limit to Rs 2 Lakh. This amendment has been passed through Finance Act, 2017 and notified on 31-March-2017. Complete details on Rs 2 Lakh Cash Transaction limit have been provided in a new section referred to as ‘Section 269ST‘. As per Section 269ST, any person who enters into a transaction of Rs 2 Lakh or above in cash, will be liable to a penalty of an amount equivalent to the amount of transaction.
debora M
(BUSINESS DEVELOPMENT MANAGER)
(1697 Points)
Replied 13 September 2019
In Budget 2017-18, a ban on cash transaction of more than Rs 3 lakh has been proposed. The same has been mentioned in the Finance Bill 2017. But, the Govt of India has made amendment in Finance bill and has reduced the Cash transaction limit to Rs 2 Lakh. This amendment has been passed through Finance Act, 2017 and notified on 31-March-2017. Complete details on Rs 2 Lakh Cash Transaction limit have been provided in a new section referred to as ‘Section 269ST‘. As per Section 269ST, any person who enters into a transaction of Rs 2 Lakh or above in cash, will be liable to a penalty of an amount equivalent to the amount of transaction.
Kapadia Pravin
(17249 Points)
Replied 13 September 2019
parasuram
(Manager Accounts)
(41 Points)
Replied 13 September 2019
| Originally posted by : parasuram | ||
 |
Dear Sir. What is the limit to receive in cash and limit for cash payment to vendors |  |
Keep it under 10,000 for peace of mind.
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 14 September 2019
1. Limit as per sec 269SS is Rs. 20,000 (in cash) in aggregate per person in a day as loan or deposit or any other sum.
2. Limit as per sec 269ST is Rs. 2,00,000 for receiving any amount in cash in aggregate per person in a day. However, this rule will not be applicable for banks and governments.
3. Any type of business payments per day to a single person should not exceed Rs. 10,000 in cash. So vendor payment should not exceed Rs. 10,000 in cash. This is as per sec 40A(3). Payment in excess of Rs. 10,000 will attract disallowance while computing PGBP.
Please correct me if the above solution has an alternative view.
parasuram
(Manager Accounts)
(41 Points)
Replied 14 September 2019
Dear Suresh Sir,
Thank you so much for the information shared.
Nilesh Odedara
(6 Points)
Replied 14 September 2019
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