Salary paid to Joint account

E.KALAIKOVAN (Sr. Accounts Manager ) (338 Points)

19 November 2021

Company pay salary to staff through net payment. Just now found payment to one staff in Joint account.

Can Company pay salary to staff in Joint Account. Is there any issue?

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4 Replies

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 19 November 2021

Unless the first name in the account is of the employee no issue

CA. Sourav Sarkar (Chartered Accountant ) (24573 Points)
Replied 19 November 2021

No problem

CA Raj Doshi (Practising CA) (7735 Points)
Replied 20 November 2021

There is no issue if the payment is done in a joint account where the employee is the second holder. A joint account belongs to all the holders and each holder can clear cheques and receive payments in the said account. But generally this is not advisable administratively due to other practical issues like bifurcation of saving bank interest, SFT reporting of second holder transactions in the pan of first holder by banks etc.