Can we pay our employee 15000 in cash per month? I was confused with Rule 6DD and wanted some clarification.
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Can we pay salary of 15000 in cash
Replies (4)
Rule 6DD states that one cannot pay more than Rs. 10,000 in cash to a particular person in a day
So effectively dividing the salary into two parts (7500 each) per month will be allowed?
Not advisable.
So I was looking section 40 a(3) and it said that if payment of more than 10k is made in a day that amount will be added to profits of business and deduction isn't available except for exception mentioned in rule 6DD. I'm confused regarding this. So does this mean that one can pay more than 10k in cash but they won't be able to take deductions on this payment or they can't pay more than 10k at all?
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