Sagar Sharma (CA Final Fianance Executive) (111 Points)
26 August 2009Hi,
Please let me know that whether an assessee can pay a salary exceeding Rs 20000/- in Cash? If possible let me know the provisions where I can also see it.
N.Naveena Maheswara Rao
(Assistant manager for accounts)
(1096 Points)
Replied 26 August 2009
Revenue payments exceeding 20000/- should not be paid in cash. Since salaries are revenue in nature should not be paid in cash
RITESH KOTHARI
(B.COM, FCA, DISA(ICAI))
(778 Points)
Replied 26 August 2009
NO, SALARY CANT BE PAID IN CASH EXCEEDING 20000/-.
ashish gupta
( student)
(1922 Points)
Replied 26 August 2009
NO revenue exp. paid in cash above Rs.20000/- will be allowed
Rajeswari
(emp)
(40 Points)
Replied 26 August 2009
Hi,
I am Rajeswari,
The question is wether cash payment of salary exceed Rs.20000 , Allowd or disallowed.
This cash payment of salary made by employer. salary payment is a business expenses. The cash payment of salary excced Rs.20000 ,it will be disallowd subject to IT rule of 6DD.
pragati singhal
(NOW A FINAL STUDENT)
(101 Points)
Replied 26 August 2009
As per Rule 6DD no revenue expenditure should exceed Rs. 20,000/- in cash.
So salary can not be paid in cash above Rs. 20,000/-.
CA Suresh kolluru
(CA,CS,M.com)
(159 Points)
Replied 26 August 2009
Payment cash should not exceed 2000/-
Ravi Chopra
(CA)
(661 Points)
Replied 26 August 2009
hello,
firstly .. is it 20000 p,.m. or p.a.. if 2000 p.m..i think in order to prevent ourself we can make payments by dividing it.. we can make it in installments.. 20000 is the limit for 1 day.. so payments cud be made either twice in a month.. who says we cant pay a total of 20000 as salary in cash. if the dates are different we can.. according to me!!
secondly. if it is 20000 p.a. then .. think practically who works below 1500 p. m. almost noone..n this way all employers will have to disallow salary :)). so i think my above opinion should be considered..
example
so wt u say guys??
N.Naveena Maheswara Rao
(Assistant manager for accounts)
(1096 Points)
Replied 26 August 2009
whether the payment is relating to per month or for whole year is irrelevent section talks about cash payment at a time should not be made in cash if amount exceeds 20000/-.
That money may be related to whole the period but it was disallowed.
ya. to avoid disallowance we can show in our books by dividing the amount in different dates.
Ravi Chopra
(CA)
(661 Points)
Replied 26 August 2009
so i m rite in saying if WE PAY IN DIFFERENT INSTANCES. ITS ALLOWED. SO THIS OPTION CAN BE OPTED BY ASSESSES :)
CA Devanshi Gandhi (Ajani)
(FCA DISA Mcom CIFRS & LLB)
(9060 Points)
Replied 26 August 2009
it can not be paid
Ravi Chopra
(CA)
(661 Points)
Replied 26 August 2009
so may i knw.. in wt respect i m wrong.. suppose if a employer pys 10000 p m. in cash.. is it dis allowed???
also if u say so... tk example of purchases.. if a person purchases 10000 rs raw material each month.. in cash.. n yearly his cash prchases will become 12000 in cash.. so will all be disallow??
Ravi Chopra
(CA)
(661 Points)
Replied 26 August 2009
so u mean to say.. every expenses in which aggregate of 20000 per annum paid in cash is disallowed!!!! hey! its hard to digest?? if we divide it on diferent time periods wts the fault... ????
CA Devanshi Gandhi (Ajani)
(FCA DISA Mcom CIFRS & LLB)
(9060 Points)
Replied 26 August 2009
it should be seen as per transaction.....and not aggregate.
CAclubindia
