Absolutely Fine as long as your that employee dont claim that he did not get his salary.
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..
Akash (CA Final (2nd Group Pending)) 07 July 2013
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
CA-AK (CA) 07 July 2013
No such restrictions.....have proper receiving on stamp.
sanjay singhal (CA) 07 July 2013
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.
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 (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 (Executive) 13 June 2016
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.
CA.Vinita Gupta (Deputy Manager- Finance) 20 August 2016
Cash salary can be paid but its better to pay in Cheque or NEFT.