As per my opinion
Please refer IT act section 40A(3), as per act cash expenditure is not allowed ore than 20,000 Rs.so we needs to drawn the salary through cheque only if payment is more than 20,000 Rs.
Below that we can give cash.
I did not find any change in the contents of Sl.6 even in the amended act.
BTW the CM of WB had informed that all state govt salary payments will be made through Bank. Is there any Government notification in this regards.
Dear Asish, I am aware of the section as per the IT Act but I am surprised that even the court did not do anything to enforce this. There is a court case pending since 2004. Hasnt come up for final hearing as yet.
Thanks & Regards
I think your attention slipped from it. The Section (6) is as follows:
6. Wages to be paid in current coin or currency notes -
All wages shall be paid in current coin or currency notes or in both : [Provided that the employer may, after obtaining the written authorization of the employed person, pay him the wages either by cheque or by crediting the wages in his bank account].
The Act says that it is upto the employee to take salary in whichever way (cash or cheque or bank payment) he wants to. If its through cheque or through Bank, then a written authorization is needed from the employee. We want to disburse salary only through Bank.
Thanks & Regards
Gujarat is likely to be the second state to do the same.
Other states may do so also, but till then, the payment can be made only with approval of the employees. So a standard procedure is to get the same signed by the employees when the join and to (if possible), ammend the standing orders to include payment of salary only through bank.
The disallowance on payment of more than 30,000 in cash under the income tax act does not cover salary. There are exemptions for payment made in cash under any other law.
We are some employee working in XYZ company & working here from last 1 and half yers. But from last 3 months our salary is due from companys side. In this regard we face so many problem in our daily. In this situation what step we can take as per you openion.Please help me in this situation.