Hello Team, I am working with a start-up company and trying to set up everything. When it comes to the salary process, I have created a company bank account. However, my directors want to process "Employees' November salary on a cash-in-hand basis" only for this month. For those who are on a package below 10k, I can process them, but what about employees with higher packages? I shouldn't go with a cash-in-hand process for them. What options should I consider? Please suggest. The headcount of staff is 15, including directors.
From India, Secunderabad
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From India, Secunderabad
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Income Tax Act Guidelines on Cash Payments
As per the Income Tax Act, if you are carrying on a business or profession, the law prescribes 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 adhere to this, the expenses paid in cash will not be eligible for tax deduction. Therefore, these guidelines will come into play when making larger payments.
From India, Mumbai
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1593As per the Income Tax Act, if you are carrying on a business or profession, the law prescribes 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 adhere to this, the expenses paid in cash will not be eligible for tax deduction. Therefore, these guidelines will come into play when making larger payments.
From India, Mumbai
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SALARY CALCULATOR & INCOME TAX.zip
Income tax declaration & Salary structre 2012-13.xls