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Daily expenses

SUMIT BADYAL (709 Points)

02 June 2021

hi, can we transfer the amount in the employee salary account to pay for day to day cash activities.

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8 Replies

CA Altamush Zafar (GST Consultant) (15966 Points)
Replied 02 June 2021

Better make a petty cash account

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CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 02 June 2021

For meeting daily expenses petty cash register and account should be maintained

SUMIT BADYAL (709 Points)
Replied 02 June 2021

We don't have a debit card and through chq, it's a lengthy process to take cash especially in this tym. if we deposit cash in an employee account who manages daily cash activities is this wrong?

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 02 June 2021

No it is not a correct way, you should maintain petty cash

CA Raj Doshi (Practising CA) (8903 Points)
Replied 02 June 2021

Depositing cash in employee account could create an issue for the employee if he isn't filing in the return and/or the cash deposit per annum is more than 10 lakhs. Advisable to do a bank transfer and let the employee withdraw through ATM whenever he estimates probable payments in the subsequent few days.

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CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 31 July 2021

Agree also with above comment

Nidhi (Chief Accountant) (3150 Points)
Replied 31 July 2021

Sourav you are replying twice the same answer just for getting points or 250/- reward on CAClubindia.

what is sense of yes or no, just for point..

Please respect this reputed profession and stop making fun of public platform.

It's already told by reputed member to you that stop replying without any base just for points

If you are not Stop this, I have to make complaint to block your account.