Kollipara sundaraiah asked 5 years ago
Cash limit for income tax
An individual I.t. Person cash on hand balance 6 lacs show in the balance sheet at the end of the financial year( March). if any limit cash on hand in the income tax act.
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Mohit Bansal answered 4 years ago
Dear member,
As of now, there is NO LIMIT on having any amount of Cash in Hand in business as per Income Tax Law in India. So you can have any amount of Cash in Hand in your Balance Sheet at FY end as long as it is legitimate.
PS: It may be noted that there are limits prescribed for cash transactions in any business as per various provisions of the Income Tax Act such as ₹10k limit on cash business expenditure or ₹2 Lakh limit on any cash transaction etc. Non-compliance of such limits may attract dis-allowance of business expenditure and in some cases heavy penalties too.
I hope this will help.
