Cash limit

Hello

I want to know what is the limit for cash transaction per day? Rs.10,000/- or Rs.20,000/-??

is it different from 2lac cash limit per day/per transaction ?

 

Replies (25)

10000/ per day and 2 lacs/annum

is it under same section 269ST?

No, under section 40(3) , the cash limit of 10000/ day came in to existence.

thanks for the information.this means we have to take care that yealy limit of 2lac should not be crossed as well 10000/-per day should not exceed. But what is we have given cash for petty cash use which exceeds Rs.10,000/-?

Limit of 10000 is mentioned under 40a(3)

Originally posted by : Rudrayani Shedjale
thanks for the information.this means we have to take care that yealy limit of 2lac should not be crossed as well 10000/-per day should not exceed. But what is we have given cash for petty cash use which exceeds Rs.10,000/-?

yes that's it. In the case of petty cash , you can transfer the amount but make sure that it doesn't crossing the limit. Means, for a single transaction done with petty cash shuldn't cross 10000/ day. And there is an exception in this section... That is the  payment to transport operator is allowed up to Rs. 35,000.

Originally posted by : Nithin Joseph
Limit of 10000 is mentioned under 40a(3)

Yes ...

ok. but Rs.10,000/-per day limit will be applicable from 1.4.18?

Yes..with effect from 01.04.2018

Originally posted by : Rudrayani Shedjale
ok. but Rs.10,000/-per day limit will be applicable from 1.4.18?

Yes...

As per my personal opinion, at the time of payment 10000 u/s 40A(3) FROM 01/04/2017 and at the time of receipt 200000.....

ITS MY PERSONAL OPINION, IF ANYBODY HAVE DIFFERENT VIEW THEN VIEWS ARE WELCOME.. THANKS. DISCLAIMER: ITS NOT PROFESSIONAL ADVICE.

Details of petty cash expenses on different dates Rs.15000/-

that is paid through cash on a single day-means cash given for site petty cash Rs.15000/-

is is breaking of 10000/-cash limit?

Originally posted by : Rudrayani Shedjale
Details of petty cash expenses on different dates Rs.15000/-

that is paid through cash on a single day-means cash given for site petty cash Rs.15000/-

is is breaking of 10000/-cash limit?

Don't book expenses which is crossing the limit. if you give that amount to petty cash , it is ok. If you utilise that petty cash amount in a single transaction for booking some expenses, you would attract the penalty or disallowance...

Originally posted by : Aashish Sachdeva
As per my personal opinion, at the time of payment 10000 u/s 40A(3) FROM 01/04/2017 and at the time of receipt 200000.....ITS MY PERSONAL OPINION, IF ANYBODY HAVE DIFFERENT VIEW THEN VIEWS ARE WELCOME.. THANKS. DISCLAIMER: ITS NOT PROFESSIONAL ADVICE.

From 1/4/2018 onwards... smiley

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