Circular No. 37/2016 — Cash payment restrictions u/s 40A(3)
Date: 2016-01-01 Status: ACTIVE Category: Business Income / Deductions Binding on Department: Yes (Section 119 / Section 400 IT Act 2025)
Summary
Restrictions on cash payments under section 40A(3). Expenditure exceeding Rs.10,000 in cash disallowed.
Key Directions
- Cash payment exceeding Rs.10,000 in a day disallowed.
- Exceptions: payments to RBI, banks, government, specified circumstances under Rule 6DD.
Applicability Under IT Act 2025
Saving Clause: Section 536 of IT Act 2025 saves circulars issued under the 1961 Act “so far as not inconsistent” with the new Act.
| Old Section (1961 Act) | New Section (2025 Act) | Consistent? |
|---|---|---|
| 40A(3) | 41 | Yes |
Cross-References
Act Sections
- Section 40A(3)
- Section 41
Related Circulars
- None identified
Key Case Law (Circular Supremacy)
- To be populated — cases where this circular was cited/applied
Full Text
Full text to be added — see raw/circulars/ for PDF when available
Source
- Official: incometaxindia.gov.in/circulars