05 October 2013
maximum 20000/day in general and 35000/day to transporter,subject to exceptions of rule 6DD.like if the payment is made to government/RBI/SBI or any of its subsidary or payment is made for some forest and agricultural produce or on account of bank holiday. For more information,go through this link http://www.simpletaxindia.net/2009/12/payment-exceeding-20000-40a3-exceptions.html
As per Sec 40{a}3 of the IT Act.. Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds {20000} twenty thousand rupees, no deduction shall be allowed in respect of such expenditure.
07 October 2013
1)No cash payment should be made more than 20000 for single person in a single day..(for payment of frieght for goods in business allowed up to 35000) . . Kindly refer to Exceptions to Rule 6DD for Exceptions in a case where cash payments will be allowed
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