cash payment

there's no restrictions for cash payments. only the seller has restrictions

sir ,there is a restriction...in case if transaction amount exceeds 200000 INR ...it will conflict the provsions of section 269ST and there will be 100% penalty u/s 271DA

@ Sahu 269st restrictions are in respect of sellers and for any purchase, either capital or revenue, the cash payments shouldn't exceed 10000

There is restriction on Cash payment as follows:

1. If cash payment is made for any CAPITAL EXPENDITURE Or for 35AD assets to a SINGLE PERSON in a Day Exceeding Rs. 10,000/- then it shall be Disallowed under section 40A(3).

[Amended as per FA 2017]


2. RESTRICTION FOR RECEIVER (Seller):

The seller can also not RECEIVE amount in cash exceeding Rs. 2,00,000 u/s 269ST and if he receives then he would be liable to penalty under section 271DA equal to amount received.