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Daily limit of cash transaction

Anwarsha Salim (22 Points)

11 December 2020

What is the daily limit of cash transaction?
Rs.10000 / Rs. 35000 as the case may be OR Rs. 200000

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4 Replies

JATINDER KUMAR (Accountant) (3662 Points)
Replied 11 December 2020

Daily - 10000 for payment of expenses and creditors

You can not receive payment above Rs. 200000

Daily - 35000 for Transport Business

3 Like

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Anwarsha Salim (22 Points)
Replied 11 December 2020

Is there any condition about receipt from single transaction/person

2 Like

rama krishnan (12244 Points)
Replied 11 December 2020

For creditors, the limit is 20000

2 Like

Yash Soni (18 Points)
Replied 11 December 2020

There is no specific limit for cash transactions but as per sec 40A(3) it will get disallowed is payment for a expenditure made to a person in a single day for amount exceeding ₹10000 for mode other than by a/c payee cheque or bank draft or by mode specified under rule 6ABBA. for hire limit is ₹35000. and allowed if exp exceeds limit if condition under rule 6DD satisfied.

2 Like