If I accrue my employee's salary monthly, and paid also monthly.
but such a salary is greater than Rs 2 Lakhs
does such a payment attract penalty u/s 269ST
Yes, if paid on any single day ....
7 Replies
Jatin Gada
(searching job)
(151 Points)
Replied 02 October 2018
Section 269ST prohibits any person to receive amount of Rs. 2 lakh and above in cash:
(i) In aggregate from a person in a day, or
(ii) In a single transaction, or
(iii) In respect of transactions relating to one event or occasion from a person .
Since u pay salary on Monthly basis first 2 points doesnt apply.
Employment is neither One Event or Single Occassion thus 3rd point also doesnt apply as per my opinion.
Still Some Expert Opinion needed for point no.3
Jatin Gada
(searching job)
(151 Points)
Replied 02 October 2018
Just clarify how much salary do u pay on Monthly basis to Single Employee.
Rahul Lodaya
(Student)
(45 Points)
Replied 02 October 2018
35000 approx net of deductions
paid monthly
paid monthly
Jatin Gada
(searching job)
(151 Points)
Replied 02 October 2018
If u are paying 35000 salary by cash then section 269st will attract.
Also your salary payment will be disallowed under income tax act if it exceeds 20,000/- in a single day per employee.
Ashwin P. Gohil
(auditor)
(231 Points)
Replied 02 October 2018
section 269ST is applicable only to the person who is receiving the amount and not applicable to the payer.
if you are paying salary to employee than 269ST will be applicable to employee since he/she is receiving amount of 200,000 or more and penalty will be levied on employee for receiving 200,000 or more by way of other than a/c payee cheque...etc
and section 40A(3) disallow the expense if paid more than 10000 in a single day to any person.
if you are paying salary to employee than 269ST will be applicable to employee since he/she is receiving amount of 200,000 or more and penalty will be levied on employee for receiving 200,000 or more by way of other than a/c payee cheque...etc
and section 40A(3) disallow the expense if paid more than 10000 in a single day to any person.
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