Cash payment limit

under which rule or IS ? pls clarify

Maximum Cash Payment Limit in Day is 20000/-

in Case of Transporter it is 35000/-

if we Pay Above of this Amount It will not Qualify as a Expenses and added Back By Dept in our Income

https://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=7997

https://chiefreviews.com/issues-regarding-the-payment-of-above-rs-20000/

i agreed with sonu kumar sir  answer

The limit of sec 40a which limit Rs 20000 by cash is applies with some condition.

in following case this is not applies-----

1.when its nessary of business which perpose of save any loss.

2. payment in cash on sunday or any public holiday.

3.payment for exp of capital goods

 there is some examlpes ,list is more where payment made in cash excess of Rs 20000 is allow.

thank you very much for your replies as our cheque book has not yet been received from Bank we are temporarily doing NEFT, DD payments and also Cash Payments but never exceeded the Rs.20000 limit, just wanted to clarify on this issue:

So i can make payment to 5 different persons in a day by cash as below

a - 12000

b- 7000

c-15000

d-4000

e-500

and it will be normal accounting and not against any law.

the only thing is per person per day 20000 cash should not exceed.

Yes You Can Make Payment....

Your View is Right

if there is cash paymnet of morethan 20000 towards electricity bill,is it allowable