I am working as a hr in a contractor firm . i am receiving my salary by cash in hand. how can it effect my future when i will change my job .
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Most probably, you are receiving cash as the contractor firm wants to evade statutory liabilities and taxes unless they provide you with a payslip that includes all statutory deductions.
If this is the case, it may hinder your ability to justify your actual salary to your next employer, as there is no valid proof of salary payment or tax deductions.
Regards,
Rahul Chhabra
From India, Delhi
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157If this is the case, it may hinder your ability to justify your actual salary to your next employer, as there is no valid proof of salary payment or tax deductions.
Regards,
Rahul Chhabra
From India, Delhi
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Provision of the Income Tax Act, 1961
Please see the following provision of the Income Tax Act, 1961:
(i) To reduce the existing threshold of cash payment to a person from twenty thousand rupees to ten thousand rupees in a single day; i.e., any payment in cash above ten thousand rupees to a person in a day shall not be allowed as a deduction in the computation of income from "Profits and gains of business or profession."
It states that a company can pay an individual Rs. 10,000 in cash in a day, and it is perfectly legal to do so. However, for an employee, it would be difficult to show proof to the next employer because there won't be any bank passbook entry or a copy of a cheque. Therefore, it is better if your salary is credited to your bank account or a cheque is given to you for your salary.
From India
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Please see the following provision of the Income Tax Act, 1961:
(i) To reduce the existing threshold of cash payment to a person from twenty thousand rupees to ten thousand rupees in a single day; i.e., any payment in cash above ten thousand rupees to a person in a day shall not be allowed as a deduction in the computation of income from "Profits and gains of business or profession."
It states that a company can pay an individual Rs. 10,000 in cash in a day, and it is perfectly legal to do so. However, for an employee, it would be difficult to show proof to the next employer because there won't be any bank passbook entry or a copy of a cheque. Therefore, it is better if your salary is credited to your bank account or a cheque is given to you for your salary.
From India
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Salary-Note.doc
SALARY SHEET CALCULATION.xls