Cash limit

Page no : 2

Rudrayani Shedjale (Assistant Accountant) (751 Points)
Replied 12 March 2018

means petty cash expenses in a single day also should not exceed 10000/-?

Upgrade to CAclubindia Pro. Subscribe Now!

VINEETH.R (FINANCIAL ACCOUNTANT) (458 Points)
Replied 12 March 2018

yes...That's it...

Rudrayani Shedjale (Assistant Accountant) (751 Points)
Replied 12 March 2018

thank you.

Divakar (Student CA Final ) (11857 Points)
Replied 12 March 2018

10000 limit for cash expenses in a day from 1.4.17 FY and assessment year 1.4.18...and 2 lakh limit is for cash receipts and not annual limit... Like u can't raise cash sales more than Rs. 2 lakh in a day.

1 Like

RAJA P M ("Do the Right Thing...!!!") (128075 Points)
Replied 12 March 2018

i) The 10000 cash limit from 01/04/2017....

ii) The Cash limit not restricted in PETTY CASH. It's restricted 10k to One person. You can give 10k to multiple persons...

iii) Also the same way for the 2lakhs p.a to a Single Person....

Upgrade to CAclubindia Pro. Subscribe Now!

VINEETH.R (FINANCIAL ACCOUNTANT) (458 Points)
Replied 13 March 2018

Originally posted by : RAJA P M
	i) The 10000 cash limit from 01/04/2017....ii) The Cash limit not restricted in PETTY CASH. It's restricted 10k to One person. You can give 10k to multiple persons... iii) Also the same way for the 2lakhs p.a to a Single Person....

Yes... so sorry for the wrong information that i had given... The amendment is applicable from 1-4-2017.

Rudrayani Shedjale (Assistant Accountant) (751 Points)
Replied 15 March 2018

Amendment of section 40A.

In section 40A of the Income-tax Act,—

(a) in sub-section (2), in clause (a), in the proviso, after the words “Provided that”, the words, figures and letters “for an assessment year commencing on or before the 1st day of April, 2016” shall be inserted;

(b) with effect from the 1st day of April, 2018,—

(A) in sub-section (3), for the words “exceeds twenty thousand rupees”, the words “or use of electronic clearing system through a bank account, exceeds ten thousand rupees,” shall be substituted;

Divakar (Student CA Final ) (11857 Points)
Replied 15 March 2018

Hlw mam that is the assessment year 18-19 and so previous year is 17-18 in which u earn income... Hope u understood very well the concept of previous year and assessment year in income tax

Rudrayani Shedjale (Assistant Accountant) (751 Points)
Replied 15 March 2018

if i make a contra entry of Site Petty Cash Rs.15000/- Dr to Cash Rs.15000/- is it okay?

Divakar (Student CA Final ) (11857 Points)
Replied 15 March 2018

Ya that is okay... Petty cash is not an expense... And also 10000 limit is applicable to one person... I mean payment to one person regarding one expense