Menu
Cash limit
how much can i pay cash payment to my creditors in a year
Replies (3)
Quick Summary
You can pay daily 10000 to a party in cash
1). CASH PAYMENTS :
As per the Provision of Section 40A(3) of the Income Tax Act 1961, A person can pay a maximum of Rs. 10,000 per day to per person in "CASH". If the Cash payment exceeds Rs. 10,000 in a day, then you will not be allowed to claim deduction of that particular expenditure in your P&L A/c [ PROFITS AND GAINS FROM BUSINESS OR PROFESSION HEAD ]. There is no Year limit. The limit prescribed under the Law is "per day."
2). CASH RECEIPTS :
As per the Provision of Section 269ST of the Income Tax Act 1961, No person shall receive an amount of "Two lakh rupees" or more :
(a). in aggregate from a person in a day; or
(b). in respect of a single transaction; or
(c). in respect of transactions relating to one event or occasion from a person,
otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account.
As per the Provision of Section 40A(3) of the Income Tax Act 1961, A person can pay a maximum of Rs. 10,000 per day to per person in "CASH". If the Cash payment exceeds Rs. 10,000 in a day, then you will not be allowed to claim deduction of that particular expenditure in your P&L A/c [ PROFITS AND GAINS FROM BUSINESS OR PROFESSION HEAD ]. There is no Year limit. The limit prescribed under the Law is "per day."
2). CASH RECEIPTS :
As per the Provision of Section 269ST of the Income Tax Act 1961, No person shall receive an amount of "Two lakh rupees" or more :
(a). in aggregate from a person in a day; or
(b). in respect of a single transaction; or
(c). in respect of transactions relating to one event or occasion from a person,
otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account.
Agree with Mr. Shivam RC
Recent Topics :
- How to correct a NIL GST return filed by mistake w
- Is it legally permissible not to report F&O lo
- Query on FCTRS
- APPLICABILITY AND BREAKDOWN OF GST COMPLIANCE ON S
- Advance for supply of goods
- Question for members: how do you manage client doc
- Clarification Required on Invoicing and Receipt of
- SEBI Registered VS NSDL Registered RTA
- Income tax or capital gain tax for Resident Indivi
- PCIT-1 Thane Email address
Related Topics :
CAclubindia
