Salary exceeding 30k in cash

it i legal,restriction only to single day

Hi Ravi,

I have read this article. But it says you can pay salary in cash if the person is in some remote area, like a ship or something. I am talking if it's legal for a scenario like let's say in Mumbai city, by a PVT LTD company, where you have all the banking facility (as against a ship), but an employer is paying 45K to his employee in parts? Is that legal ? or will it invite any legal repurcussions?

it is not illegal if it is paid in parts subject to condition that payment by cash in a single day does not exceed Rs.10,000

Somemone said that it's mandatory for a PVT LTD with more than 10 employees to pay in NEFT or cheque. 

Someone from HDFC bank (RM level) said one cannot pay more than 20,000 salary in cash.

If you want to know about it then you have to follow first the provision of section 40a(3)...

You can't make the payment more than Rs. 10,000/- in a day in a person.

But this topic is not very important...

Kindly go through a logic:-

If you paid salary in cash more Rs. 10,000/- how the department may able to know that you paid salary in cash more than Rs. 10,000/- untill your book of accounts called for scrutiny u/s 143(2)..

Hi, guys,

Will really appreciate a few more responses.