Cash payment limit

20000 generally and for transporters 35000

Originally posted by : Gautam Sharma
	20000 generally and for transporters 35000

yeah agreed

20000 in aggregate to a person other than transporters

35000 in aggregate to transporters

However the above limit is not applicable          

1. Payment during any bank strikes 

2. Circumstances and cases in which Rule 6DD is applicable

True 20000/-

https://www.sgrtax.in

According to Section 40A(3) of Income tax act 1961 , any cash payment exceeding rupees 20000 made to a person in a single day is disallowed from being debited into P&L account . The above limit is rupees 35000 for transporters.

Rs.20000 per day per bill.

Disallowed in income tax 2 condition are satisfied 1) payment above 20000 thousand 2 ) bill amount above 20000 .in case of transporter limit is 35000 

I Agree with the above  comments.

AS PER INCOME TAX RULE CASH  PAYMENT EXCEEDING 20000/ ARE NOT ALLOWED FOR  DEDUCTION THRERFORE IN THE INSTANCE IT IS ADVISED TO MAKE PAYMENT THROUGH CHEQUE.

CA A B GOEL.