Labour charges Cash

Sir,

Can we pay labour charges in cash mode Rs.30000/- labour for cleaning and stitching of wheat/Rice bags.

Any cash limit for labour in a single day.
Replies (4)
Quick Summary
This discussion clarifies the rules around paying labour charges in cash. While there's a £10,000 limit per single transaction to a single person for tax deduction purposes under Section 40A(3), this doesn't apply if the payment is split across multiple individuals or transactions. To ensure deductibility, it's advised to issue separate bills for amounts under £10,000, even for a group of workers.

No, as per section 40a(3) if any cash payment is made for single transaction to single person in day exceeds 10000 then same shall not be allowed as deduction in profit and loss account
Dear Sir

it's not single person.Its the group of 4 to 9 person. so can we pay
But it will cover under single transaction
It's better to pay in different small bills aggregating 9000 each.

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