Causal labour

This query is : Resolved 

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.

21 April 2025 thank you sir for your valuable suggestion


21 April 2025 You are welcome.



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