Cash sale exceeding twenty thousand

Querist : Anonymous (Querist) 25 November 2021 This query is : Open
Is it legal to pay in cash to a trader for a sale amount exceeding twenty thousand rupees.

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In India, there are specific limits on cash payments. Generally, you can pay up to Rs. 2,00,000 in cash for a purchase. However, for business transactions, the limit is significantly lower, restricted to just Rs. 10,000. It's important to be aware of these regulations to ensure compliance.

Sudhir Kumar, Advocate (Expert) 25 November 2021
please come with facts of the case.

kavksatyanarayana Online

(Expert) 25 November 2021
Yes. You have not posted the facts of the case. To my understanding it is yes.

Dr J C Vashista (Expert) 28 November 2021
You can pay up to Rs. 2,00,000/-, if it is not a time pass question.

K Rajasekharan (Expert) 28 November 2021
One can pay up to two lakh for a purchase. But if that is a business transaction the amount you can pay is Rs 10000 alone.

I have enlisted some of the important restrictions on cash transfer in India into an article at https://lawwatch.in/restriction-imposed-on-transferring-cash-in-india/

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