salary in cash above Rs 20000

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2011 We had employeed persons and pay salary up to rs 28000 p month. They have no bank account can we pay salary in cash . We are running Educational institution

CA Navin Jain

CA Navin Jain (Expert)
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20 July 2011 WILL BE DISALLOWED UNDER SEC 40A(3)

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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20 July 2011 the salary over and above 20000 given in cash will be taxable...

Zeeshan

Zeeshan (Expert)
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20 July 2011 However you can pay salary to those employees in two installments. (please make a proper and separate payment voucher for the same on two different dates of payments)