Is a Salary Slip Necessary for Cash Payments Under 20,000? Let's Discuss Tax Deductions

Dear experts,

I want to know if a salary slip is needed with the breakdown of components like HRA and conveyance, even if there is no tax for the individual earning 20,000 per month and the amount is paid in cash. Should professional tax be deducted?

Thank you.

The PT is on the Gross Salary. There is no linkage of the same with the Income Tax, or payment in Cash/cheque or Bank. So deduction is a must. Read the slabs applicable to your state and deduct accordingly.

Regards,
Ashutosh Thakre

Hi Mridulashankar,

A salary slip is essential for transparency for both the management and employees, ensuring awareness of tax liabilities. A good organization should have a well-established system to provide salary slips to employees promptly. The need for employees to repeatedly ask for salary details and deductions should not arise. Without a system for salary slips, the management's time may be wasted more than the time spent providing salary slips regularly.

Professional Tax Considerations

Professional Tax is a state-specific matter with varying rates across states, subject to specified criteria by the authorities. It is crucial to observe and adhere to the prescribed norms.

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