Salary

This query is : Resolved

Sandeep Kumar (Querist)
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28 August 2013 sir
if a company pay to his emp. salary Rs. 25000/- per month in cash.
please tell me is it the violation of section 40a(3).

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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28 August 2013 Yes.it is violation u/s.40A(3), will be disallowed

Sandeep Kumar

Sandeep Kumar (Querist)
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29 August 2013 is there any solution that we did not come under this section 40a(3)

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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29 August 2013 you can pay in 2 installment in different days each below Rs.20000

Sandeep Kumar

Sandeep Kumar (Querist)
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30 August 2013 there are 16 employee in our org. and all get the salary in cash. and we enter in the tally software total amount.
as dr. salary 180000/-
cr. cash 180000/-.
is this correct as per law or not.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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30 August 2013 Incase all 16 employees receiving below Rs.20000/- then no problem

Sandeep Kumar

Sandeep Kumar (Querist)
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31 August 2013 there are 3 employee get the salary more than 20000/- . they asked full payment only in a single day.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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31 August 2013 such as case issue the account payee cheque only. either convince them to receive in 2 days if cash, otherwise issue cheque. if pay cash, the same will be disallowed u/s.40A(3)

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