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Cash payment limit of Rs. 10000/-

11 June 2018

Is limi of Rs. 10000/- applicable in case some one pay dues of land revenue to state government department or should pay through a/c payee cheque?

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (182873 Points)
Replied 11 June 2018

You can pay by cash to Governmental agencies, no bar.

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Kartikey Jain (Intern) (2382 Points)
Replied 11 June 2018

As per rule 6DD of the Income Tax Rules 1962, disallowance due to application of Section 40A(3) shall not be made if payment is made to the Government.

So limit of Rs 10,000 shall not apply in case of payment of land revenue to the Government, so you can make the payment in cash or crossed cheque as per your choice.

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