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

c.bakshi

c.bakshi (Expert)
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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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