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Cash salary more than 20000

This query is : Resolved 

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..??

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

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.

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.


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