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Causal labour

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(Querist)
21 April 2025 Sir,

Please guide me for whether cash payment for causal labour is allowable or not?
what is the cash limit? how much causal labour

Thanks & Regards.
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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
21 April 2025 The employer can pay wages in cash to daily-wage or casual workers, especially when the workers may not have bank accounts or in remote locations.
As per Section 40A(3) of the Income Tax Act:: If casual labour are paid daily wages in cash, the payment per day should not exceed Rs. 10,000 to avoid disallowance of tax deductions.
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Sanjay Powar

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Sanjay Powar (Querist)
21 April 2025 thank you sir for your valuable suggestion
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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
21 April 2025 You are welcome.
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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
28 September 2025 Good luck.....
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