Company pay salary to staff through net payment. Just now found payment to one staff in Joint account.
Can Company pay salary to staff in Joint Account. Is there any issue?
4 Replies
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 19 November 2021
Unless the first name in the account is of the employee no issue
CA Raj Doshi
(Practising CA)
(8924 Points)
Replied 20 November 2021
There is no issue if the payment is done in a joint account where the employee is the second holder. A joint account belongs to all the holders and each holder can clear cheques and receive payments in the said account. But generally this is not advisable administratively due to other practical issues like bifurcation of saving bank interest, SFT reporting of second holder transactions in the pan of first holder by banks etc.
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