Cash limit Per day

This query is : Resolved

farook (Querist)
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05 March 2020 Dear Expert,

What is the cash limit per day,Can somebody explain about this

If i am paying 10000 for X that is the limit for that Entire day ?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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06 March 2020 Cash limit per day means - The maximum amount which can be paid or received, as the case may be, in a day. Suppose you have purchased Goods from X for your business. Bill amount is 18740/-. You can pay him Rs 10000/ today and the balance Rs 8740/- on tomorrow. If you pay more than Rs 10000/- in a single day , you are violating the Cash Limit provisions.

farook

farook (Querist)
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06 March 2020 As per the section 40 (3) we have spend the cash limit to a person 10000 in single day
For EX : I Am paying 10000 to X and same day paying 5000 to Y this is allowed or not
Kindly advise Expert

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Ca Neha Jain

Ca Neha Jain (Expert)
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06 March 2020 The amount paid to X and Y is less than or equal to Rs. 10000. Hence both will be allowed. 10000/- is limit for payment to a single person in a day.