Hello Team, As I want to know the information whether am going correct or wrong, am working with a start-up company, as I am trying to set up everything but coming to salary process, I created a company bank account, but my directors want to process "Employees Novembers month salary on cash in hand basis" only for this month. but for those who are in below 10k package I can process them, but how about higher package employees?. I shouldn't go with cash in hand process, what options I should prefer.
please suggest me. Over headcount of staffs are 15 including directors.
From India, Secunderabad
As per Income Tax Act, if you are carrying on business or profession, the law has prescribed a daily limit of Rs 10,000 beyond which payments in cash cannot be made for any expenditure to a single person. If you fail to do so, the expenses paid in cash will not be eligible for tax deduction. So the above guidelines will come into play in making bigger payments.
From India, Mumbai
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