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Cash limit payment for purchase of goods

Others 1329 views 7 replies
Mr Ram is buy goods in cash from Mr Sham of Rs 1,60,000 only single invoice bill. Mr. sham is allowed to receive cash up 2 lakhs as per IT Act. can Mr. Ram payment to Mr. sham in cash form of Rs 160000 of goods purchase payment. what is IT ACT cash payment if purchase of goods payment.
Replies (7)
Yes 200000 max allowed for 1 transaction of purchase.
Payment limit
Not correct
Pls answer correct
Only 10k Cash payment allowed.

According to Sec 40A(3) of IT Act 1961, any payments made to an individual above Rs. 10,000 a day in cash cannot be claimed as a deduction while filing tax returns. Before the 2017 announcement, this upper ceiling was set at Rs. 20,000 per day. 

No, Cash payment cant be exceeds Rs 10k per day per person (and per expenses).


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