Is It Legal and Safe to Accept Part of My Salary in Cash? Seeking Advice on Future Implications

satyanarayana38mba
Dear Members,

Recently, I received an offer from a company. They are offering a fixed salary of 35k per month to me. However, the issue is that they will deposit 25k into my bank account, and the rest will be given to me in cash. Is this arrangement legally valid? Additionally, could I potentially encounter any challenges in my future career due to this setup?

Please advise.
Rahul Chhabra
Such an arrangement is not recommended and is not legally valid. The salary earned must be paid through means that are accounted for in Income Tax for both the employee and employer. Specifically, the cash component paid to you instead of salary will not be accounted for in Income Tax purposes. Your next employer will also not consider the cash component of the salary for your salary computation.

Regards,
Rahul
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