Cash purchase

This query is : Resolved

Madhu M (Querist)
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15 August 2020 Dear sir,
I have small doubt about cash transaction limit on sales & purchase , receipt, payment

Is cash receipt limit upto 200000/-???
what is cash purchase limit ???

Thanks in Advance

madhu M

CA KARAN SINGH

CA KARAN SINGH (Expert)
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15 August 2020 1. Cash Receipts of Rs. 200000 or more is prohibited. It means cash can be received up to Rs. 1,99,999.
2. Cash Purchase is allowed up to Rs. 10000 in a day from a single person.

Madhu M

Madhu M (Querist)
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16 August 2020 Thanks u sir
But my doubt is when sale limit 1,99,999 ...and
That is purchase for other party so how sir ????

Please calrify

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CA KARAN SINGH

CA KARAN SINGH (Expert)
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16 August 2020 That is not the sale limit sir, the limit of Cash receipt of Rs. 1,99,999 consists of the very types of receipts. Even you entitled to receive an exempt income, that too cannot be received in cash of Rs. 200000 or more.
If still you have doubt then call me on mobile no. given on my profile