Please Help: salary in cash

Posted Date : 25-Apr-2012 , 04:01:49 pm | Posted By sourabh mehra

whether salary more than rs. 20000 can be paid in cash

Category : Income Tax | Answers : 3 | Comments : 0 | Hits : 1104

Answers

Answer By: Vikash Kumar Jha

Dear sauarbh , there is no restriction like that one canot paid more than Rs. 20000 in cash as salary but this will be cover Under the Section 40A(3)as cash payment exceeding Rs.20000 as per income tax rule.so must refer this section. Now I can hope that you got answer of your Query

Answer By: Madhu Kiran

Any amount including salary is more than Rs.20,000/- and is paid in cash will attract the Section 40(A)(3)of the Incometax Act and it will be disallowed.

Answer By: CA Satuti Mahajan

There is no restriction in cash payment of salary but the section 40A(3) will be attracted.