Cash transcations in group companies

KINDLY CONFIRM CASH TRANSCATION LIMIT PER DAY IN GROUP COMPANIES?
Replies (3)
There's no separate threshold limit for transactions among group companies
Hi Ganashyama

there is no direct limit as such. it depending upon nature of transaction. if it is expenses related then 10k . if loan kind then different limit

Thank you
You can also write to me  at sthayin @ gmail for further assistance

1. In the case of cash payments, the maximum amount allowed in a day to a single person is Rs. 10,000. Anything above this amount will be subject to disallowance u/s 40A(3). This is applicable to all types of payments. Even applies when payment is made to group companies. 
2. As per sec 269ST, in case of cash receipt from a single person in a day for a single transaction, the limit is Rs. 2 lakhs. Irrespective of whether the same is received from group companies.
3. In case of acceptance of loans or advance or any other sum in cash in a day from the same person, it should not exceed Rs. 20,000. This is dealt in sec 269SS and this also applies to all types of transactions in cash. 
4. As per sec 269T, in case of repayment of loan or advance in cash the same Rs. 20,000 limit is applicable for all kinds of transactions. 
5. There is no separate privilege for cash transactions with respect to group companies. 
Please correct me if the above solution has an alternative view. 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
14 August 2026
Article Assistant CA Articleship

Eshwar & Co Chartered Accountants - Nungambakkam

Chennai

CA Inter

View Details
Company
17 August 2026
Chartered Accountant with US GAAP Experience

Austin Med Solutions Pvt Ltd

Bengaluru

CA

View Details
Company
ARTICLESHIP 14 August 2026
Article Assistant

N J Suresh & Associates

Bengaluru

CA Inter

View Details
Company
19 August 2026
PAID ARTCILE ASSISTANT

My Legal Tax Consultants Pvt. Ltd.

Noida

CA Inter

View Details
Company
ARTICLESHIP 17 August 2026
Article Assistant

Jain Ankit and Co

Gurgaon

CA Inter

View Details
Company
24 August 2026
Semi-Qualified CA/CA Finalist - Tax, GST, Audit & Accounts

Bharat Shah & Associates

Mumbai

CA Inter

View Details
Company
28 August 2026
Audit Manager

K A R M & CO

Mumbai

CMA

View Details
Company
21 August 2026
Accountant

A G International

Kolkata

B.Com

View Details