Cash Payments salaries

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This discussion outlines a procedure for a private hospital to pay staff salaries in cash. It addresses the monthly salary costs for two groups of employees and suggests a payment schedule to comply with the Income Tax Act's limit of £10,000 per day for cash payments. Paying salaries in intervals is recommended to ensure compliance and avoid disallowed expenses.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

19 June 2020 Assess runs a private hospital.1.employees nos.4*20,000 =80,000/- per month 2. employees nos.4*18,000=72,000/- per month .

How to salaries paid producure cash mode for one month.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

19 June 2020 Pay salary once in 15 days salary in cash payment should not exceed 10,000.

c.bakshi

c.bakshi (Expert)

20 June 2020 YES, IF YOU PAY MORE THAN 10000 IN CASH IN A SINGLE DAY THEN THE AMOUNT WILL BE DISALLOWED AS PER INCOME TAX ACT. IT IS BETTER TO PAY SALARY IN INTERVAL, SO THAT IT COULD NOT REACHED THE LIMIT

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