Cash withraw limit in Partnership firm

12 April 2020

Can partner take 20000.00 in form of cash every month in a partnership firm.
Is it allow by law or not please clarify.Tks

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3 Replies

Uday (Article Assistant) (411 Points)
Replied 13 April 2020

It depends upon how the partner is taking ? either
1) Drawings
2) Loan/advance
3) Salary

RAJA P M ("Do the Right Thing...!!!") (128083 Points)
Replied 13 April 2020

@ Mr Dinesh Banthia.,

Can You elaborate with more details for Your query...?!

Uday (Article Assistant) (411 Points)
Replied 13 April 2020

1) Drawings - No limit
2) Receipt of Loans/advances -Sec 269SS - penalty will be levied
3) Salary - Expense Disallowed as per Sec 40A(3)

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