Causal labour


This query is : Resolved 

Quick Summary
Yes, employers can pay casual labour in cash, particularly for daily wage earners or those in remote areas without bank accounts. However, to ensure the payment is tax-deductible, the cash payment per day should not exceed £10,000, as per Section 40A(3) of the Income Tax Act.

(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.

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.

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

21 April 2025 You are welcome.

28 September 2025 Good luck.....


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



Similar Resolved Queries


loading


Unanswered Queries



CCI Pro



Answer Query



Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details