How Do I Prove My Cash Salary to a New Employer Without Salary Slips?

pk07
Hi, I am an MBA. I worked in an organization that did not have any HR setup, so I received a salary of Rs. 30,000 in cash. Now, as I am getting a new job, the new company is asking for proof of my salary. However, I do not have any salary slips to provide. The new company is claiming that it is fake and that I cannot be paid so much in cash. Please help.
Ashoknegidi
I hope your salary details are in your appointment letter. If not, ask your ex-company to provide a letter stating that you received ₹30,000. They will help you if you have a good relationship with them.
pk07
I have an appointment letter which states that I will receive my salary in cash. However, the consultant is questioning how a company can pay such a large amount in cash.

Regards
arunmjadhav
Legal Requirements for Salary Payments

As per the law, if you pay salaries and wages exceeding Rs. 5000, you need to obtain a signature on the voucher and attach a revenue stamp. I suggest that if you have already obtained such a signature, make a photocopy of the voucher and explain the situation to them.

If you have not obtained a signature on the voucher while attaching a revenue stamp, then I believe your company has made a significant mistake.

Regards,
Arun J.
ajeetvarma50
It is strange that your company is not obtaining your signature on a revenue stamp. It is lost to the State Government. If government officials come to know such a thing is being practiced in your organization, they may face problems.

You said you are receiving Rs. 30,000 per month. If you multiply it by 12 months, it works out to Rs. 3,60,000. I think your organization is complying with the Income Tax guidelines in force.

If you are applying through the proper channel to a new organization, your current organization will fulfill all the requirements you need, including a certificate of the salary details you are being paid in the present organization.

Best of luck.
Richard J Valladares
It may help if you define your issue in this manner:

Current CTC Situation

- Current CTC: Rs. 30,000/- (with no proof, but hopefully with an appointment letter)

If you have an appointment letter, then unless it is proven fake, you have proof of your salary, irrespective of how you receive it. You do not need to prove to the consultant how you receive your salary.

If there is no appointment letter, then yes, you have an issue. You cannot ask for anything above Rs. 30K in terms of a new CTC.

So, do you feel the new company is trying to reduce your pay in any way due to this? Or are they just checking for proof of actual pay? What is your concern?

Regards,
Richard
bk mohanty
Generally, nowadays, most companies prefer to pay either by cheque or deposit the salary directly into the bank account of the concerned employee. Even if the company pays in cash, the money must still be deposited by the employee into their bank account. Therefore, there are three alternatives to provide proof of salary:

1. Appointment letter copy
2. Bank passbook showing the monthly salary deposits made by the employee, if applicable
3. Undertaking (service certificate) from the previous employer upon request, which can serve as a valid document.

Regards,
B.K. Mohanty
Director
Cypress Management Associates
Mobile: [Phone Number Removed For Privacy Reasons]
rramxx
1. It is not allowable to pay more than Rs. 20,000 on any day to a person in cash.

2. Even if Rs. 30,000 was paid in cash, TDS must have been deducted, and the employee can ask for the TDS certificate (also available on the IT website).

3. Mr. Pk07 might have worked only for a few days, and the salary being a small amount might have been paid in cash through a voucher. Even then, there has to be a salary slip.

4. If I am the new employer, I would certainly look at the case with a lot of suspicion - there is something wrong somewhere. No company in its right mind would pay such an amount in cash month after month; it can be unaccounted money!
panchal.bharat64@gmail.com
I'm also facing the same problem. I am drawing 7 lacs per annum plus incentive, conveyance, bonus, and incentive in cash. All was managed by the owners with no name in the books of accounts. I'm facing the same problem when applying for new jobs. I need help from somebody who can guide me while applying for new jobs.
bk mohanty
Salary Proof: Essential Documentation

Salary proof is a document that a recruiter insists on and is a must. Employees receiving cash should deposit it in their bank account upon receiving their salary in each wage period. A photocopy of the bank account could be produced on demand to the recruiter, which could be helpful to some extent, as this document is not very authentic. Alternatively, an experience certificate could also be insisted upon from the employer, mentioning the last drawn CTC part, for submission to the recruiter.

Regards,
bk mohanty
saswatabanerjee
From what I understand, the company is not accounting for the salary it gives you. Income tax rules do not allow payment of more than ₹30,000 at a time or ₹70,000 for the whole year in cash to any person. Payment of wages rules in Maharashtra require payment of salary above ₹3,000 a month by bank transfer or account payee cheque. So, you are dealing with someone who is paying you with black money.

There will therefore be no records of you at the office, as someone not paying officially will not risk keeping such records. I do not know what you did with that money. If you deposited all or part into the bank, you are okay as you can show the bank account to the recruiter. If you kept and spent the money, then you have a problem. You will have to convince the recruiter that you are telling the truth. Let him check your knowledge from a practical view to verify you are doing this type of work. You may have to settle for a lower salary, but you need to get out of this company.
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