CS Arpita Rajpurohit (Company Secretary) (1111 Points)
06 January 2009hi frens,
how can i do tax planning for a persno who receives salary in cash.......is it advisable to receive it by cheque or get it deposited in account directly
wht difference does it make frm taxation point of view, if one receives salary in cash.
Its depend on the person
if you want in cash and does not want to disclose then your employer also should not disclose in his Profit and Loss A\c
Because if case comes in the knowledge of I.T.O. they can demand for cross verification
and
it is more safe to received by cheque
if you and your employer contributed to recognised provident fund
and there are certain point for tax planning but if i discussed the msg becomes to long
Its depend on the person
if you want in cash and does not want to disclose then your employer also should not disclose in his Profit and Loss A\c
Because if case comes in the knowledge of I.T.O. they can demand for cross verification
and
it is more safe to received by cheque
if you and your employer contributed to recognised provident fund
and there are certain point for tax planning but if i discussed the msg becomes too long
CS Arpita Rajpurohit
(Company Secretary)
(1111 Points)
Replied 06 January 2009
sir, no contribution to PF is made........only Professional Tax is deducted frm salary......& it is paid in cash.
the co will also show the amt in P& L a/c.........n will also issue form 16 at the end
is it safe now to get salary in cash or still i should prefer & insist on salary by cheque.
Rajeev Nair
(Finance Professional)
(510 Points)
Replied 06 January 2009
What is d Gross amt of salary.....?
CS Arpita Rajpurohit
(Company Secretary)
(1111 Points)
Replied 06 January 2009
sir, its 2.64 l p.a.
n the basic is 16.5k p.m.
CA Sudhir Halakhandi
(PRACTICING CHARTERED ACCOUNTANT)
(13401 Points)
Replied 06 January 2009
IT DOES NOT AFFECT THE EMPLOYEE WHETHER THE SALARY IS RECEIVED IN CASH OR BY CHEQUE.FOR AN EMPLOYEE THERE IS NO DIFFERENCE FOR TAXABILITY
FOR EMPLOYER EXPENDITURE AT ONE TIME IN EXCESS OF RS.20000.00 IS ADDED BACK TO HIS INCOME IF PAID OTHERWISE THAN ACCOUNT PAYEE CHEQUE OR DRAFT-Section 40A(3)
- CA SUDHIR HALAKHANDI
Arul Ganesh
(Company Secretary)
(98 Points)
Replied 06 January 2009
Mr. Mukesh Kumar Rawal, hope you are a budding professional. pls mind your ideas and words. Is this ur contribution to the CA club?
Piyush Jain
(CA)
(283 Points)
Replied 06 January 2009
if possible, receive about 90000 salary as HRA and arrange fo rent receipt of about 110000(if he is actually not paying any rent). Receive Rs. 9600/- as transport allowance. and with other deduction under section 80C, he will be below taxable limit.
Take care
piyush
R.Suresh
(Sr. Executive)
(394 Points)
Replied 06 January 2009
I thing so, this cash expenses is disallowed Under the act because the expenses going more the Rs.20k. for singel payment.
In a compnay point of view You should received by chq is better.
R.Suresh
(Sr. Executive)
(394 Points)
Replied 06 January 2009
I thing so, this cash expenses is disallowed Under the act because the expenses going more the Rs.20k. for singel payment.
In a compnay point of view You should received by chq is better.
CA Sudhir Halakhandi
(PRACTICING CHARTERED ACCOUNTANT)
(13401 Points)
Replied 06 January 2009
ARE WE DISCUSSING THE TAX PLANNING OR TAX CHORI? PLEASE KEEP THE DISCUSSION IN LEGAL MEANS TO MAKE IT USEFUL
- CA SUDHIR HALAKHANDI
pratik
(CA)
(1186 Points)
Replied 10 January 2009
i think u should ask ur employer to give u salary in check only , if u dont want to fall in any problem mam
pratik
(CA)
(1186 Points)
Replied 10 January 2009
i think u should ask ur employer to give u salary in check only , if u dont want to get in any problem mam
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 11 January 2009
In the fourm they are just talking rubbish things......sorry to say that.....all questions are against the laws.....and i think its become a practice that illegal things are becoming legal
Please dont do this.......
2nd thing suggestion should be given when u are sure otherwise that can create big problems for somebody
CAclubindia
