Cash sales limit

There is no Limit for Cash Purchase or Sale. It depends on Availability of Cash or Bank balance one has. 

I guess your question is not clear.

please clear your answer again.

Dear Chandan Pal ji

as per income tax Act 1961 cash expenditure above Rs. 20000 is dissallowed u/s 40(3). so if u made purchase above 20000 in single transaction same purchase is disallowed under income tax Act.

In case of sales transaction the seller has no disallowance consequences in case the sale invoice(cash memo) exceeds the limit of Rs. 20000 since no deduction will be taken by the seller of such sale and consequently no disallowance can be made.

If you purchase goods for cash exceeding Rs 20000 it will be disallowed and the addition will be made.

As per Notification no. 3545E issued by Income tax issued on 30.12.15. if assessee made CASH PURCHASE OR SALR of Rs. more than 2 Lakhs they have to quote PAN of both parties on Invoice.

W.E.F. JANUARY 1, 2016 ONWARDS

TRANSACTION OF SALE/PURCHASE OF ANY GOODS/SERVICES EXCEEDING ₹ 2.00 LAC PER TRANSACTION AND BUYER HAS PAN

1. PAN of seller and buyer to be written on the invoice itself
2. Verify the pan of buyer by taking copy of PAN card
3. No other compliance/filing of returns required

Thanks a lot Vinay Somani!!
I was unaware about it.

Ur welcome Harshad Kanekar