Hi Experts
Please confirm whether the one time cash payment limit of Rs.20,000 is applicable on payment of cash salary or wages or not?
Regards
Ankit Kukreja (Student) (40 Points)
29 April 2011Hi Experts
Please confirm whether the one time cash payment limit of Rs.20,000 is applicable on payment of cash salary or wages or not?
Regards
NIKHIL T
(CA Final Student)
(40 Points)
Replied 20 July 2013
As per section 40A(3) of IT Act Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, no deduction shall be allowed in respect of such expenditure. Expenditure includes salary also.
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