Salary paid in cash to employees

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Querist : Anonymous

Querist : Anonymous (Querist)

04 October 2018 Dear Expert,

Can we pay salary in cash for Rs.20000 /- to the employee.Can these expenses is subject to dis allowance.Please Guide.

Prudhvi Raj

Prudhvi Raj (Expert)
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04 October 2018 Hi

Yes it disallowed under section 40A(3A)

As per section 40A(3A)cash payment to a person from twenty thousand rupees to ten thousand rupees in a single day; i.e any payment in cash above ten thousand rupees to a person in a day, shall not be allowed as deduction in computation of Income from "Profits and gains of business or profession

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