limit of cash for debtor and creditor

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amount received cash from old debtor and paid cash to creditor limit for one day.
Replies (10)
10000 for each party

1. The only restriction placed in transacting in cash with respect to receipt is under sec 269ST. No person shall transact in a day exceeding Rs. 2 lakhs in cash in a single day to the same person relating to one event. 
2. So sec 269ST puts restriction to receive in cash from a person in a single day. 
3. Make sure the amount received from the debtor is less than Rs. 2 lakhs. 
4. With respect to the payment to creditors, it should not exceed Rs. 10,000 per day in cash as per sec 40A(3). 
5. So payment to creditors should not exceed Rs. 10,000 in cash. Otherwise, disallowance of such payment will be attracted while computing profit. 
6. Penalty would be levied u/s 271DA equal to the amount of contravention u/s 269ST. 
Please correct me if the above solution has an alternative view. 

Dear Mr Suresh Thiyagarajan.,

Point no 1 & 2 says let day as per your reply.
But, What about per Year...?

1. As long as per day transaction does not exceed Rs. 2 lakhs sec 269ST will not come into operation. 
2. Per year, I don’t think there is no limit for a cash transaction. As long as sec 269ST is not violated. 

cash received from relatives and friends (unsecured loan 4 lacs).repayment cash each day 10 thousand and interest free accepted.
Relatives or Relative...?
realities two members 2 lacs and friends three members 2 lacs
not cleared again...
cash loan from relatives A for one lac and b for one lac and cash loan from friends X for one lac,Y for fifty thousand,Z for fifty thousand received for as per books.my doubt loan repayment each person 10 thousand for day different dates and loan interest free accepted.

If I take a loan from my relatives or family members in the course of my business what will it be shown as under the balance sheet?

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