Cash Payment

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Rushabh (Querist)
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02 June 2017 Can we make cash payment of salary to a single person aggregating 240000 before the amendment took place in 40a(3) i. e. For fy 2016-17.. And does it require to report these transaction under 114E(5)..

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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02 June 2017 As per section 269ST cash payment of more than Rs.200000 is prohibited (After 1st April 2017), whether payment relates to expense prior to amendment or after amendment that does'nt matter. In your case even if salary pertains to FY 2016-17 same cannot be paid in cash because amount to be paid is more than Rs. 240000, same can be paid by way of account payee Cheque/Demand Draft.

Nothing is required to be reported under 114E(5) because assessees who are liable to get their accounts audited AND received more than Rs. 2.5 lakhs in cash are required to submit STF in Form 61A (as per 114E(2) Sr. No. 10) and person receiving cash has to file same, reporting is to be done ONLY if BOTH conditions are satisfied .

Rushabh

Rushabh (Querist)
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04 June 2017 Thnq sir...

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