Go AD-Free with CAclubindia Pro and get a FREE CCI Coffee Mug. Subscribe Now!

Income in cash

Rakesh (NA) (59 Points)

26 August 2019

How much money can be accepted by cash as salary from a company?

Reply
Follow
Share

6 Replies

Kapadia Pravin (17264 Points)
Replied 26 August 2019

You can accept any amount of cash as salary but employer will be able to pay upto Rs 10000 only

Upgrade to CAclubindia Pro. Subscribe Now!

Shivam RC (Student) (23683 Points)
Replied 26 August 2019

The employer will be able to pay upto Rs. 10,000 in CASH , as exceeding such amount in cash is restricted as per the Provision of Section 40A(3) of the Income Tax Act 1961, under the head PGBP.

1 Like

Rakesh (NA) (59 Points)
Replied 26 August 2019

Is it Rs. 10000 per month or per financial year?

Jatin (Accountant) (3479 Points)
Replied 26 August 2019

10000 per day per party

1 Like

Shivam RC (Student) (23683 Points)
Replied 27 August 2019

It is Rs. 10,000 per day per person.

Section 40A(3) restricts Payment exceeding Rs. 10,000 in CASH.

Section 269ST restricts Cash Receipts of Rs. 2,00,000 per day.

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Rakesh (NA) (59 Points)
Replied 30 August 2019

Does it mean that an employee who gets a monthly salary of Rs. 3 lakhs (for example) can take in cash Rs. 10000 from his/her employer throughout the month instead of a credit at the end of the month as Rs. 10000x30 = Rs. 3 lakhs? Is this legal?