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(Guest)

Cash salary

Absolutely Fine as long as your that  employee dont claim that he did not get his salary.



 12 Replies

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)     06 July 2013

But for Income tax  purpose u need to hav supportings that u paid salary in cash to genuine employee..

1 Like
Akash

Akash (CA Final (2nd Group Pending))     07 July 2013

There is no sections of I Tax Act prohibiting the payment. The expense will not be disallowed as it doesn't exceed 20000.Yes you can pay the employee.But it is better to pay by bank as proper trail is available.
1 Like
CA Sunayana Kocchar

CA Sunayana Kocchar (Practice)     07 July 2013

Yes as for Salary there is No such Provision restricting you payment of Salary in Cash & Disallowance for the same

2 Like
CA-AK

CA-AK (CA)     07 July 2013

No such restrictions.....have proper receiving on stamp.

1 Like
sanjay singhal

sanjay singhal (CA)     07 July 2013

Yes salary of rs 16000 can be paid in cash. Receiver sign should be taken on cash payment voucher with revenue stamp.
1 Like
Lokesh

Lokesh (CS professional)     08 July 2013

Employee can be paid his salary in cash of any amount.

However, proper deduction of Tax i.e TDS should be ensured otherwise the liability is going to be on  the employer.

Secondly, proper receiving should also be ensured.

1 Like
CA. Kunal Lakhotia

CA. Kunal Lakhotia (ACA)     08 July 2013

Proper signed voucher with revenue stamp.

Nimish Jain

Nimish Jain (Internal Auditor/CA final student)     08 July 2013

There is no such restriction. Have proper vouchers with revenue stamps and authorised signatures. But it is much better to pay through bank as proper trail is available.

AKLESH KUMAR GOIT

AKLESH KUMAR GOIT (article)     08 July 2013

there is nothing to worry about so long the company does not pay to a person(employee or otherwise) in a day an amount or aggregate of  amounts  exceeding Rs. 20000... it holds good for both private and public companies...however , deduction of tds and maintainance of proper voucher by the company  is  must.

 

Bee Bee

Bee Bee (Executive)     13 June 2016

Hi Friends,

I've a scenario here. my friend received the salary in cash from April 2012 - Aug 2013 [ April 2012 - May 2013 is below 20,000. But June and July it is 23,000] and he has relieved from the company by July 2013. Will it be accepted? or Will there be any problem? If so what will be the problem? (for the employee or employer). Now he has got a form - 16 (not e-filed; manual entry since it comes NIL return ) for the same.

Kindly help

CA.Vinita Gupta

CA.Vinita Gupta (Deputy Manager- Finance)     20 August 2016

Cash salary can be paid but its better to pay in Cheque or NEFT. 


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