Restriction on Cash Payment

Hi Everyone,

Is there any provision in Income Tax act which restrics cash payment for the persons having only Salary Income. Section 40A(3) exists only for computation of income from PGBP. Pls advise

Hello @garg.pulkit131,

There is no such restriction for amount of cash payments. However, we recommend to keep cash transactions minimal.

hello,

Cash which i receive from my friends around 20000 /- is that taxable income.

Hey @sheetal,

The cash received from your friend can be treated as a gift and gifts of monetary value of up to ₹50,000 are not chargeable to tax.

Hope this helps!