What is the rules for cash payments more than 20000/- and what provision for cash payments for single party
6 Replies
Pankaj Arora
(Learner)
(3134 Points)
Replied 29 January 2011
You can not payment in excess of rs.20000.00 in a day to same person. But you can payment of two different bills in excess of rs.20000.00 to same person.
CA. Abhishek K. Pandey
(Manager (Advance))
(901 Points)
Replied 29 January 2011
You can not make a payment exceeding Rs. 20,000.00, in a single day to the same party for a single bill, through cash or bearer cheque.
If you do so, then the respective expenditure will be disallowed.
Exception:
1. Payment made for plying, hiring, transportation charges upto Rs. 35,000.00
2. Payments made on bank holidays, in rural areas etc.
CA Krishna Chaitanya M
(Chartered Accountant)
(463 Points)
Replied 29 January 2011
is it allowed for a single bill more than 20000 say 38000, payment in cash for two days 19000,19000rs respectively?
CA. Abhishek K. Pandey
(Manager (Advance))
(901 Points)
Replied 30 January 2011
Yes its allowed in sucha way.
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