Daily wages in cash

we have paid in cash more than 10 k
is a section 40A (3) applicable or not
and even esi cover on those casual daily labour
Replies (4)
Quick Summary
This discussion clarifies the applicability of Section 40A(3) of the Income Tax Act regarding cash payments for daily wages. It confirms that exceeding ₹10,000 in cash per person per day for such payments can lead to disallowance of expenses. The conversation also touches upon the ESI coverage for casual daily labourers.

Section 40A(3) prescribes to pay not more than 10000 rupees in cash.
In your case disallowance will be attracted
Even daily labour is applicable cash restrictions
Yes it's applicable.
But it is Rs. 10000 per person
If it exceeds 10000 per person and single day..then disallowed

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