Is the cash payments limit of Rs.10,000 applicable from April 2017

Dear SRRF Members,

As per finance Act 2017 Limit for payment of expenses by cash is reduced from

Rs. 20,000 to 10,000/-. When from will this 10,000 limit apply? Is it from 1st April 2017?


Vidya Sagar Devabhaktuni
President, SKG Sangha
“Mandara” 3rd Main,
Muneshwara Nagar
Antharagange Road
KOLAR – 563 101

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2 Responses to Is the cash payments limit of Rs.10,000 applicable from April 2017

  1. Subhash Mittal says:

    Yes, what Mr Dalmia states is correct, i.e. payments by cash or self/bearer cheques will not be allowed effective AY 2018-19 (i.e. Financial Year 2017-18).

    To further expand on this, under the context of NGO, it would mean such payments may be disallowed as an application, however this is more of an assumption as these disallowances are mainly under S40A(3). However to be on conservative side if we accept this, one also needs to understand that any payments made in the form of other than a/cs payee cheque even for capital items would disallowed. However more than Rs 10,000 payment on a single day is disallowed, while if it is on different dates, this would not be subject to disallowance. However as per second provisio of S.40A(3A) in case of goods transporter cash payment upto Rs 35,000/- is allowed.

    On a more relevant note, please also note that cash donations in excess of Rs 2000/- made after 1-4-2017, would not be allowed.

  2. s k dalmia says:

    yes pl – relevant to Ass year 2018-19

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