Cash salary more than 20000

Save Share

This query is : Resolved

Piyush Mittal (Querist)
Follow

22 May 2014 Hi if we paid salary Rs 23000 to employee in cash then it is disallowed under income tax for deduction..but if we divide it in two parts( salary for june total 23000 and showed in accounts on 15.06.13 - 13000 and on 20.06.13- 10000) ...then pls tell me it is allowed or not..??

Guest

Guest (Expert)

23 May 2014 yes you can give in cash in two parts.......

Arun Jain

Arun Jain (Expert)
Follow

23 May 2014 You can give it in one part too, as salary can be paid in cash, there is no rule reagrding salary cash payment.

Rupesh Jain

Rupesh Jain (Expert)
Follow

23 May 2014 you can not give any amount claimed as expenses in cash exceed rs. 20000/-
and also it is better to pay all expenses by cheque. it is give you benefit when you face income tax scrutiny.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!