Legal way to receive salary in cash

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I only heard about use of Re 1 stamp but unaware of how it should be used. Are there certain steps to be followed and /or format to be taken care of when issuing salary slip? Need to know all the steps to be followed by employer & employee.
Replies (4)

May refer: 1. https://blog.cleartax.in/paying-salary-to-employees-step-by-step-to-find-out-how-much-tds-to-deduct/

2. https://indianexpress.com/article/india/govt-clears-ordinance-to-let-companiess-pay-salary-via-e-mode-cheque-4438529/

3. https://www.paycheck.in/main/labour-law-india/work-and-wages

Thanks fot the links.

The salary paid in cash greater than 10K but is below annual taxable band. No issue of TDS here.

So just want to concentrate on the mode of payment & nothing else.

Since its cash mode,I have heard employer should get signature from employee on Re 1 revenue stamp on payslips as proof of payment. Is that true ?

In view of the amendment of Schedule I, to the Indian Stamp Act 1899, the one-rupee stamp is required to be affixed on any receipt, the amount or value of which exceeds Rs 5,000. This amendment has come w.e.f. 10.09.04. The stamp is required to be affixed in respect of receipt which has been defined as under in Section 2(23) of the aforesaid Act:“Receipt” include any note, memorandum or writing-

  •  whereby any money, or any bill of exchange, cheque or promissory note is acknowledged to have been received, or
  • whereby any other movable property is acknowledged to have been received in satisfaction of a debt, or
  • whereby any debt or demand, or any part of a debt or demand, is acknowledged to have been satisfied or discharged, or
  •  which signifies or imports any such acknowledgement, and whether the same is or is not signed with the name of any person.
  1. The instrument which is not duly stamped is inadmissible as an evidence.

Thanks for the law reference.

So in relation to that what needs to be done when salary is paid in cash ?

Put stamp & sign individual payslips ?


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