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Cash payment limit

JAVED SHAIKH (ACCOUNTANT) (46 Points)

26 May 2016

if i make payment to adv & any legal professional of Rs 25,000/ in cash. This payment is disallowed in income tax. what is the limit of cash payment made to any expenditure.

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9 Replies

Gautam Sharma (CA) (68 Points)
Replied 26 May 2016

20000 generally and for transporters 35000

karan jit singh (Consultant) (1299 Points)
Replied 26 May 2016

Originally posted by : Gautam Sharma
	20000 generally and for transporters 35000

yeah agreed

1 Like

CA Devi Prasad Reddy P (Senior Business Analyst) (101 Points)
Replied 26 May 2016

20000 in aggregate to a person other than transporters

35000 in aggregate to transporters

However the above limit is not applicable

1. Payment during any bank strikes

2. Circumstances and cases in which Rule 6DD is applicable

Sagar Solanki (SGR Tax Advisory) (76 Points)
Replied 26 May 2016

True 20000/-

https://www.sgrtax.in

Divyam Agarwal (Practicing Chartered Accountant) (959 Points)
Replied 26 May 2016

According to Section 40A(3) of Income tax act 1961 , any cash payment exceeding rupees 20000 made to a person in a single day is disallowed from being debited into P&L account . The above limit is rupees 35000 for transporters.

1 Like

nagarajan (Accountant) (191 Points)
Replied 26 May 2016

Rs.20000 per day per bill.

1 Like

ishajain (student) (61 Points)
Replied 26 May 2016

Disallowed in income tax 2 condition are satisfied 1) payment above 20000 thousand 2 ) bill amount above 20000 .in case of transporter limit is 35000

1 Like

Thakur Shanker Singh (TAX & GST-Practitioner ) (119 Points)
Replied 27 May 2016

I Agree with the above comments.

Atul Bhushan (Service) (21 Points)
Replied 28 May 2016

AS PER INCOME TAX RULE CASH PAYMENT EXCEEDING 20000/ ARE NOT ALLOWED FOR DEDUCTION THRERFORE IN THE INSTANCE IT IS ADVISED TO MAKE PAYMENT THROUGH CHEQUE.

CA A B GOEL.