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Cash translation limits

vanjinathan (accountant) (23 Points)

30 May 2020

Cash translation limits for hospital (healthcare services)

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3 Replies

Asha Kanta Sharma (Manager - Finance & Accounts) (36355 Points)
Replied 30 May 2020

The payment for the Medical insurance premium as well as medical expenditure should be compulsorily made by any mode other than by way of Cash. (Eg. A/c Payee Crossed Cheque, Demand draft, Credit Cards, Debit Cards, UPI payments, E-wallets etc). Payment for Preventive health checkup (having sub-limit of Rs. 5000) can however be made by way of cash.

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Asha Kanta Sharma (Manager - Finance & Accounts) (36355 Points)
Replied 30 May 2020

If you're paying more than Rs 10,000 in cash for expenditure related to your business or profession, you may have to pay a penalty and expenses will be disallowed for business.