269ST

If I accrue my employee's salary monthly, and paid also monthly.

but such a salary is greater than Rs 2 Lakhs

does such a payment attract penalty u/s 269ST
Replies (7)

Yes, if paid on any single day ....

Section 269ST prohibits any person to receive amount of Rs. 2 lakh and above in cash:
(i) In aggregate from a person in a day, or
(ii) In a single transaction, or
(iii) In respect of transactions relating to one event or occasion from a person .

Since u pay salary on Monthly basis first 2 points doesnt apply.

Employment is neither One Event or Single Occassion thus 3rd point also doesnt apply as per my opinion.

Still Some Expert Opinion needed for point no.3

 

Just clarify how much salary do u pay on Monthly basis to Single Employee.

35000 approx net of deductions
paid monthly

If u are paying 35000 salary by cash then section 269st will attract.

Also your salary payment will be disallowed under income tax act if it exceeds 20,000/- in a single day per employee.

i make weekly payment to him
section 269ST is applicable only to the person who is receiving the amount and not applicable to the payer.
if you are paying salary to employee than 269ST will be applicable to employee since he/she is receiving amount of 200,000 or more and penalty will be levied on employee for receiving 200,000 or more by way of other than a/c payee cheque...etc
and section 40A(3) disallow the expense if paid more than 10000 in a single day to any person.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details