Stipend received in cash - effect on termination

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kiran uday (Querist)
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19 February 2015 I had received stipend in cash for 3 months..I took termination..My employer wrote that "CASH PAID AS PER ICAI NORMS" on form 109...I didn't enter my account details in the form..I left that column empty..Please suggest weather it shows any effect on my termination or not ? ?

kiran uday

kiran uday (Querist)
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04 March 2015 Please help me in this regard..Please

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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25 July 2025 Got it. Here’s what you should know about your situation with stipend paid in cash and termination:

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### Key points on **stipend received in cash and its effect on termination**:

1. **Cash stipend as per ICAI norms**
It’s common for firms to pay stipend in cash, especially if it’s within prescribed limits. Writing "CASH PAID AS PER ICAI NORMS" on Form 109 is a way for the employer to clarify that the payment follows official guidelines.

2. **Leaving bank account details blank**
Not entering your bank account details on the form (like Form 109 or any related document) **should not affect your termination itself**. The stipend payment method (cash or bank transfer) generally does not impact the validity or acceptance of your resignation/termination.

3. **Termination effects**
Termination depends on your notice period, terms of agreement, and firm policies — not on how stipend was paid or whether bank details were filled in the form.

4. **Potential administrative or tax impact**

* If stipend is paid in cash, you should keep receipts or acknowledgement for your records.
* The firm might have to maintain proper documentation for audit or tax purposes.
* You may need to clarify your stipend receipts when filing tax returns, but that’s separate from termination.

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### Summary:

**Your termination will not be adversely affected just because stipend was paid in cash and you left the bank account column blank.** Just ensure all your communication about resignation and clearance is documented properly.

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If you want, I can help draft a polite response or follow-up note to your employer to confirm these details. Would you like that?

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