New Delhi, Aug. 14 -- The income tax laws in India have various restrictions on payment and reception of money in cash.

The tax laws have prescribed a daily limit of Rs 10,000 in cash to a single person if you are carrying on a business or any other profession.

If you fail to do so, the expenses paid in cash will not be eligible for tax deduction, the Financial Express told.

There is one exception to this rule where you can pay up to Rs 35,000 to a transporter in a day.

The limit on accepting and repaying any loan is Rs 20,000.

In case the amount exceeds, the tax officer can levy a penalty equal to the amount of loan accepted or repaid.

This threshold is not applicable for each of the transactions of a loan but will apply to every t...