Cash apyment

no                                               

Under Two Circumstances Payment exceeding 20000/- in cash to employees are allowed:-

Terminal benefit to employee - Rule 6DD(h) Where any payment is made to an employee of the  assessee or the heir of any such employee, on or in connection with the retirement, retrenchment, resignation, discharge or death of such employee, on account of gratuity, retrenchment compensation or similar terminal benefit and the aggregate of such sums payable to the employee or his heir does not exceed Rs. 50,000.

Temporary posting of employee - Rule 6DD(i) Where the payment is made by an assessee by way of  salary to his employee after deducting the income-tax from salary as per section 192, and when such employee

•  (i) is temporarily posted for a continuous period of 15 days or more in a place other than his normal place of duty or on a ship; and 
• (ii) does not maintain any account in any bank at such place or ship