Maximam limit of cash payment

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Daljeet Chouhan

Accountant

23 Points Posted on 01 May 2015

hello. my all dear Sir,

main janna chanta hun ki agar hum A se material purchase karte hain to Cash payment Kitna kar karsakte hai.

In case of civil accounts book.... agar hum water tanker / Malba and Mitti road work ke liye purchase karte hai to uska maximam payment kya hoga.

kindly help me. . . . please.

and i am looking accounting Job in south delhi... if you have any opening as per my need please refer me.

Thanks & Regards

Daljeet Chouhan

9873748032

Replies (7)

J. K. Ratan

Compliance Advisor

629 Points Posted on 01 May 2015

Dear Sir,

As per Section 40a(3)(a) of Income Tax Act 1961 :- You Can Pay upto INR 20000.00 in single day to single person.

CA Ashok Vardhan

72 Points Posted on 02 May 2015

Rs.20000 in a Day per person, more than 20000 will be disallowed while computing income for income tax purposes

RAHUL KUMAR SHARMA

SENIOR AUDIT ASSISTANT

63 Points Posted on 02 May 2015

Rs.20000/- single day/single person/single bill. E.g two seperate payment n a single day to mr. B of rs. 15000/- & 18000/- in cash against bill no A1 & A2 then both are allowed, irrespective of the fact that agg exced 20000/-.

RONAK JAIN

Student CA Final

33 Points Posted on 03 May 2015

And for cash payment to transporter the permissible amt is 35000 rs.

RONAK JAIN

Student CA Final

33 Points Posted on 03 May 2015

and cash payment to transporter is Rs. 35000 is permissible, over n above Rs. 35k will b disallowed

vicky

Student CMA

25 Points Posted on 07 May 2015

Rs 20000 single day

shalini

269 Points Posted on 08 May 2015

I disagree with Rahul that payment made against more than one bill to a person in a day is allowed if aggregate exceeds rs.20,000. I think earlier it used to be allowed but after amendment in 2008 payment exceeding rs 20,000 to a person in a day in cash is not allowed even if the payment is made against 3 or 4 bills.

Anybody please confirm this