Wages paid in cash over rs.10000 to number of workers -40a(3
This query is : Resolved
06 April 2018
Sir(s) / Madam,
We aware that from April 2018 onwards expenses over Rs.10000/- cannot be paid in cash (earlier it was Rs.20000) Section 40A(3) restricts to do so.
1.When we pay Rs.500000/- in cash towards wages to a number of workers. Shall it be attract penalty u/s 40A(3)
2. Advance payment made to staff over the thershold amount of Rs.10000/- in cash attract the penalty under this section? As the rule is silent about advance It only restrict the expenses in a day over Rs.10000/- in cash.We assume that there wont be any restriction to pay as advance of any amount. Is our assumption correct?
Kindly clarify
We aware that from April 2018 onwards expenses over Rs.10000/- cannot be paid in cash (earlier it was Rs.20000) Section 40A(3) restricts to do so.
1.When we pay Rs.500000/- in cash towards wages to a number of workers. Shall it be attract penalty u/s 40A(3)
2. Advance payment made to staff over the thershold amount of Rs.10000/- in cash attract the penalty under this section? As the rule is silent about advance It only restrict the expenses in a day over Rs.10000/- in cash.We assume that there wont be any restriction to pay as advance of any amount. Is our assumption correct?
Kindly clarify
06 April 2018
1 No penalty u/s 40A(3) if payment to each individual not exceed 10,000.
2 Advance payment to employees restrictions apply.
2 Advance payment to employees restrictions apply.
Message likes :
2 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Selecting Tax Regime while for calculating tax relief on under Section89 of income tax act 1961.
- Cloud service
- Accounting Policies changes
- Credit note Issue reg
- P&L and B/s Format for Public Companies
- SECTION 194T
- Capital contribution of Land into SPV for Specific project attracts Income Tax & why ?
- Applicability of RCM on Frieght Inward supplies received from un-registered person
- GST on Fresh Juice Center(Sugarcane)
- Conversion of Pvt Ltd Company to a LLP
- Running non ac bus under contract with roadways
- Regarding change in correspondence address in SSP portal
- Regarding Advance Tax not claimed in the Return of Income for A.Y. 2025-26
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
- Clarification Required on GST Rate & HSN Classification – Millet-Based Probiotic Drink
- TDS Return filing if only have 15G /15H deductions and no other payments
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
