One of my friend received his stipend by cash instead payee’s cheques and he has resigned from that firm and joined some where else as Article tranee a letter from ICAI branch has been recived by previous employeer regarding objection on cash payment.
Wheather it will effect his new joining in any way. Please help us in this regard Thanx in advance
05 March 2008
CASH PAYMENTS UPTO RS. 20000/- ON A SINGLE DAY PER TRANSACTION IS ALLOWED BY IT ACT. ANY VIOLATION WILL MAKE THE PAYER RESPONSIBLE TO PAY A 100% PENALTY AS PER LAST YEAR FINANCE ACT. THE STUDENT MAY WELL REPLY (IF ASKED TO) AND EXPLAIN THAT HE RECEIVED THE SAME WHEN OFFERED BY HIS EMPLOYER.NO ISSUE ON AFFECTING HIS CAREER. R.V.RAO
CAclubindia
