Cash payment – Various Cash Payment Limits

For Businesses

Any expense paid in cash exceeding Rs. 10,000 shall be disallowed. This applies to payments made in respect of any expense in cash in excess of Rs. 10,000. The limit of Rs. 10,000 also applies to purchase of capital assets where the payment is made in cash in exceeding Rs. 10,000. Here the business shall not be able to claim depreciation for the asset purchased in cash.

Acceptance of Cash

Receiving an amount of Rs. 2,00,000 or more in cash is not allowed. This limit applies to:

aggregate receipt from a person in a day, or

receipt towards a single transaction, or receipt with respect to one event or occasion from a person

Acceptance/Repayment of Loan/Deposits

No person shall accept any loan or deposit or any specified sum from any other person in cash exceeding Rs 20,000. Further, No person shall repay any loan or deposit or advance in cash exceeding Rs 20,000.