budget 2017

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Kiran (Querist)
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07 February 2017 Sir In the budget it was announced that maximum cash transaction allowed is Rs.3lakhs what does this mean.. They have already said maximum onetime payment allowed is Rs.10000 then for which transaction is this referred please clarify kiran

CA DHAVAL MISTRY

CA DHAVAL MISTRY (Expert)
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08 February 2017 As per section 43(A)(3), any cash payment made for any expenditure to any person per day which exceeds rs. 20,000 is disallowed under the said section. Union budget 2017 has reduced this limit to Rs. 10,000/-. So, from A.Y. 2018-19 onward any cash payment made above Rs. 10,000/- will be disallowed.

Now, cash payment limit of Rs. 3,00,000 is a cash payment limit for any transaction which may be business related transaction or non-business related transaction. For example, from F.Y. 2017-18 onward, no one will be able to buy Jewellery of Rs. 3,00,000/- against cash payment.