Salary

This query is : Resolved

Sandeep Kumar (Querist)
Follow

28 August 2013 sir
if a company pay to his emp. salary Rs. 25000/- per month in cash.
please tell me is it the violation of section 40a(3).

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

28 August 2013 Yes.it is violation u/s.40A(3), will be disallowed

Sandeep Kumar

Sandeep Kumar (Querist)
Follow

29 August 2013 is there any solution that we did not come under this section 40a(3)

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

29 August 2013 you can pay in 2 installment in different days each below Rs.20000

Sandeep Kumar

Sandeep Kumar (Querist)
Follow

30 August 2013 there are 16 employee in our org. and all get the salary in cash. and we enter in the tally software total amount.
as dr. salary 180000/-
cr. cash 180000/-.
is this correct as per law or not.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

30 August 2013 Incase all 16 employees receiving below Rs.20000/- then no problem

Sandeep Kumar

Sandeep Kumar (Querist)
Follow

31 August 2013 there are 3 employee get the salary more than 20000/- . they asked full payment only in a single day.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

31 August 2013 such as case issue the account payee cheque only. either convince them to receive in 2 days if cash, otherwise issue cheque. if pay cash, the same will be disallowed u/s.40A(3)

Message likes : 1 times

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