LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Salary received in cash Rs 90000 per month

Rinky Kumar (Mrs) (34 Points)

17 January 2022

If a doctor receives Rs. 90000 per month salary, from a clinic, in cash, then how to disclose this income in income tax returns ? He also receives Rs 50000 in Bank as salary from a hospital.

Can this cash salary get deposited to bank ? How to exactly treat this cash receipt per month. ? Kindly advice

Reply
Follow
Share

9 Replies

sabyasachi mukherjee (26053 Points)
Replied 17 January 2022

File itr 1 .
deposit cash in bank.
pay tax

2 Like

MPR Sanjay Kumar (2979 Points)
Replied 17 January 2022

I have one doubt ,doctor receives a salary means " income from business or profession under know???????

1 Like

Rinky Kumar (Mrs) (34 Points)
Replied 17 January 2022

He works for a private Clinic and receives salary in cash. No TDS is deducted. There is no income from business or profession. Now the question is the treatment of this salary ? There is a clear cut violation by the employer. He can't pay more than 10000 in cash but he is doing that. So how does the escape from any violation of taxation ?

1 Like

CA Puja Sharma (Chartered Accountant) (4874 Points)
Replied 17 January 2022

The doctor is not in any default while disclosing the income in ITR because he is at the receiving end.

Since the doctor is working in the clinic and there is employer-employee relationship as mentioned by you. The receipt of Rs. 1 Lacs will be treated as salary.

Further, if the clinic is paying the amount as a professional fee(TDS applicable u/s 194J @ 10%) then the amount can be reported by the doctor as business income.

2 Like

Rinky Kumar (Mrs) (34 Points)
Replied 17 January 2022

As i mentioned, TDS is not deducted at all. The entire salary is being received in cash. I just want to ask, can he deposit the entire salary of 90000 received in cash, in bank account ???? If cash is deposited in bank by doctor himself then how to show this on ITR ??? Such huge cash deposit is it allowed ???? How to show in ITR ???

Tanuj Chandra Saxenaa (Company Secretary) (7070 Points)
Replied 17 January 2022

Yes you can deposit the entire amount in your bank account. Though it is default of the employer that he has not deducted Tds u/s 194 J @ 10%. He should show it as his salary in ITR- 1 and pay tax.

3 Like

Rinky Kumar (Mrs) (34 Points)
Replied 17 January 2022

If he deposits entire 90000 pm salary in cash to the bank then what about violations of section 269ST, which prohibits receipt more than Rs 2 Lakh in cash ( aggregate in a Year) as salary ???

Jitender Singh Rawat (Advocate) (78 Points)
Replied 18 January 2022

Declare income as Income from Profession irrespective of TDS not deducted after payment. It may happen that doctor had been not appointed on Salary Basis but on professional fees.

1 Like

Rinky Kumar (Mrs) (34 Points)
Replied 18 January 2022

Can he deposit entire 90000 pm salary in cash to the bank then what about violations of section 269ST, which prohibits receipt more than Rs 2 Lakh in cash ( aggregate in a Year) as salary ???