Employee salary FY 2021-22

This discussion clarifies the rules around paying employee salaries in cash for the financial year 2021-22. While paying the remaining balance of Rs. 35,000 in cash is permissible, it will prevent you from claiming a deduction under Income Tax. The Income Tax limit for cash payments is Rs. 10,000 per month, making online payments via methods like Google Pay advisable for the full amount to ensure tax deductibility.