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Cash Received Rs.1,00,000 as cash from Sundry Debtors

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Dharshini

Student

23 Points Posted on 01 October 2021

Amount Rs. 1,00,000 received in the form of cash from the Sundry Debtor ( Single party ) in the way of Rs.10,000 p.m for 10 months . Is this correct ? or what are the step to be taken for this.

Another one, a concern receives cash of Rs.2,40,000 from different parties i.e.Rs.10000 from each party . is this any issue?

Replies (5)

Quick Summary

This discussion clarifies the rules around receiving cash payments from sundry debtors in India. It confirms that receiving Rs. 1,00,000 from a single debtor over 10 months, or Rs. 2,40,000 from multiple different parties (Rs. 10,000 each), is perfectly acceptable. The key limit to be aware of is generally Rs. 2 Lakhs for cash transactions, but these scenarios fall within acceptable parameters.

Ankita Jain

CA in practice

185 Points Posted on 01 October 2021

In the first case, you are receiving payment below 2L during the year, so there is no issue in receiving cash of Rs. 1,00,000
In second case, you have received 2,40,000 "from different parties", therefore, no need to worry.
There is no problem in both the cases