Payment in cash

When the payment is of revenue nature, not more than 20K per day per party, otherwise its disallowed. For cheque or banking channel, no limit. For payment of any capital nature, no question of disallowance.

sir please also intimated that if one person claims for his compensation, can it be paid in cash or not ? if yes, then how much amount can be paid in cash. if there any guidelines in this regard. 

Please elaborate nature of transaction. What do you mean by "intimated that if one person claims for his compensation"?

it mean that workman compensation can be paid in cash or not? if yes, then hhow much can be paid in cash.?

Again, if you go for deduction against income, the compensation should not exceed Rs. 20000/-

But if the compensation is legal in nature, why you wish to give it by cash?.

Its always better even for the receiver when any such transactions are done thr' Banking chennals.