What is the limitation period in case of bill discounting?

The limitation period for bill discounting refers to the timeframe within which a bill must be presented for payment. This period typically varies based on local laws but generally includes:

• Presentation period: Bills should be presented for payment within 3 to 6 months from the date of the challan discounting.
• Legal action: If payment is not received, the holder may initiate legal proceedings within a specified period (usually 3 years).

Understanding these timeframes is essential for businesses to manage their receivables effectively and avoid legal complications.