Become a Govt. Certified GST Practitioner in just 58 hours. Register Now!

Cash limit

16 September 2019

How much cas receipt can i take in a day if a buyer is taking for Personal use and he pays above 10000 cash in 2 parts is their any restriction for cash receipt above 10000 by customer in a day.

Reply
Follow
Share

5 Replies

Kapadia Pravin (17264 Points)
Replied 16 September 2019

How much above 10000/- ?

Section 269ST in the Income Tax Act bans such transactions in cash amounting to Rs 2 lakh or more on a single day, in respect of a single transaction or transactions relating to one event or occasion from an individual

Upgrade to CAclubindia Pro. Subscribe Now!

Suresh Thiyagarajan (Student) (3986 Points)
Replied 16 September 2019

1. Sec 269ST which deals with cash transactions exceeding Rs. 2 lakhs per day in a single transaction with the same individual. Any cash transaction above Rs. 2 lakhs will be punishable with the same amount of penalty.
2. In case of receipt through cash, it should not exceed Rs. 2 lakhs in a day from the same person for a single transaction.
3. So the maximum amount which is allowed under sec 269ST will be Rs. 2 lakhs and it cannot be more than that.
Please correct me if the above solution has an alternative view.