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Cash payment to director

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This query is : Resolved

Gurvinder Singh (Querist)
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16 June 2014 Pls adv if we can make payment to Director, in cash of Rs 2 lacs, against loan received during previous years from Director in cheque. If yes, can I make one single voucher of Rs 2 lacs, or how much amount can be entered in cash in a single voucher.

Also, can we make payment of Salary in cash monthly to Director?

Thnx and regards
Gurvinder Singh

Sandeep Dharar

Sandeep Dharar (Expert)
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16 June 2014 No Gurvinder u can't make payment above Rs. 20000/- in cash. And secondly if the loan is received by cheque then u must have to pay it other than cash (i.e, Cheque, online transfer etc)
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Rupesh Jain

Rupesh Jain (Expert)
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16 June 2014 no you cannot make cash payment . if you do that you are no follow u/s 269TT.

if salary amount is more than Rs. 20000/- then you cannot make salary in cash. exp will disallow for your company.

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