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Salary in cash

ashish (article assistent) (23 Points)

31 December 2016

is there any restriction is imposed by govt on payment of salary to employees in cash mode??

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3 Replies

ankita gandhi (student) (5908 Points)
Replied 31 December 2016

If u are required to do Income tax Audit then, expenses made in cash above ₹20,000 is disallowed. If u are not applicable for tax audit then u can pay salary in cash

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ashish (article assistent) (23 Points)
Replied 31 December 2016

my query is not regarding Income tax... i m asking in general... is there any restriction inposed for cash salary payment (i.e. below 20,000)... in reference to cash less policies by govt.

nikita garg (ca student) (61 Points)
Replied 01 January 2017

No, there is no such restrictions on payment of salary in cash. However all other provisions like cash payment upto 20000 and documentation need to be taken care of.