Salary cash payament limit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2011 If Mr. A has 25 labours & 3 office staffs

for each labour he pay wages approx monthly 6000-15000 per month p.m. in CASH to each labour.

for office staff he pays monthly salary 21000- 25000/- per month staffs in CASH.

he has fall under Tax Audit also

Q. salary & wages in above case allowed or disallowed?

Q. is he required to deduct TDS on salary & wages. ? if NOT

Q. In future from what point he would be liable to deduct TDS.?

ca cs shriyans jain

ca cs shriyans jain (Expert)
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18 April 2011 Wages as doesnt exceed limits no tds to b deductd.
Bt in salary as payments between 21k to 25k(2.5lac p.A to 3 lacs) as 4u tax audit is applicbl then tds has to b deductd.

Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2011 Dear Sir,

Shall Mr. A is pay wages Rs. 6000-15000 per month and salary Rs. 21000-2500 per month through cash ??

Please inform me Sir,

Thank you.

Pradip

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Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2011 Dear Sir,

Shall Mr. A is pay wages Rs. 6000-15000 per month and salary Rs. 21000-2500 per month through cash ??

Please inform me Sir,

Thank you.

Pradip

ca cs shriyans jain

ca cs shriyans jain (Expert)
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18 April 2011 Only wages can b paid in cash. But whereas salary can b paid in cash by it will attract disallownce u/s 40A(3) as amt exceeds Rs.20000 to a single person.

Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2011 Dear Sir,

Please clarify this. So it will helpful to me sir.

Shall Mr. A is pay salary Rs. up to 19000/- per month through cash ??

Thank you.

ca cs shriyans jain

ca cs shriyans jain (Expert)
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18 April 2011 Its advisable nt to pay salary in cash above Rs.20000/-, so upto 20k u can pay it in cash for ur 3 employees. Ok nw is it clear