Cash sales bill limit in income tax

There is no Cash Sale limit under GST ( CGST Act 2017 ).

However Provision for Cash Sales and Cash Payment is restricted to certain amount as per the Income Tax Act 1961.

As per Section 40A(3) of the Income Tax Act 1961, CASH PAYMENT exceeding Rs. 10,000 is disallowed under the Income Tax Act 1961 ( under PGBP ).

As per Section 269ST of the Income Tax Act 1961, A person can accept Cash Receipts ( Cash Sales ) upto Rs. 1,99,999 per day.

Yes Agree with Mr. Shivam RC

But direct sales to customer what is the limit

Rupees 1,99.999/-...….......................

Refer Shivam RC explanation. He's absolutely correct. You cannot accept Cash more than Rs. 1,99,999 per day.

@ Prakash Chauhan Sir, You cannot accept more than Rs. 1,99,999 CASH per day from any person. So be it direct sales or depositing money in Bank, it should not be more than Rs. 1,99,999. Otherwise Penalty will be levied u/s 269ST of the Income Tax Act 1961.

Understood Sir...

Warm Regards.

In case if the firm pay cash 200000 to urd then will it affect to firm or not ???