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Cash payment is not allowed rs. 20,000/- or more?

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REENA (Querist)

04 June 2015 My question is cash payment is not allowed more than Rs. 20,000/- or Rs. 20,000/- and more than Rs. 20,000/-. It is allowed to make payment to same party more than Rs. 20,000/- on a single day or it is also allowed on cash expenses made by party on single day not be exceed Rs. 20000/-. If salary paid in cash and amount exceed Rs. 20,000/-, So this expenses is allowed or not. If not than what should be done in the case of salary

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

04 June 2015 It is more than Rs 20,000. Cash expenses made by party on single day can exceed Rs 20,000 but not allowed to make payment to a single person in a day more than Rs 20,000.
Salary expenses also covered. Ask the employees to open bank account till then issue cheque.

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