Can companies pay salaries in cash



Dear Sir, I have an appointment letter which says that i will recieve salary by cash. but the question i am facing from the consultant is that how come a company can pay so much money in cash.
As per law if you pay salary & wages more than Rs.5000 you need to take signature on voucher attaching revenue stamp I think if you have made such a sign take xerox copy of suxh voucher & explain them the situation.
If you have not taken sign on voucher attaching revenue stamp then I think your company has made a big mistake.
Arun J.
Hello PK,
1. It is strange that your company is not obtaining your signature on revenue stamp. It is lost to the State Government. If government officials will come to know such thing is being in practice in your organisation, they may land in some problem.
2. You said you are receiving Rs. 30,000 per month. If you multiply it with 12 months, it works out to Rs. 3,60,000. I think you organisation is taking care of Income Tax guidelines in vogue.
3. If you are applying through proper channel to new organisation, your present organisation will fulfil all requirements you need i.e. including certificate of salary details you are being paid in the present organisation.
Best of Luck.
Hi,
It may help if you define your issue in this manner
Current CTC - with no proof - but hopefully with appt letter Rs. 30,000/-
If appt letter is there, then unless proved fake - you have proof of salary, irrespective of how you get it. You do not need to prove it to the consultant how you get it.
If no appt letter - then yes, you have an issue - that being you cannot ask for anything above Rs. 30K in terms of new CTC.
So, do you feel the new company is trying to reduce your pay in any way due to this. Or just checking for proof of actual pay. What is your worry ?
Richard
Generally now a days most of the companies are preferring to pay either through cheque or deposit the salary in the bank account of the concerned employee. Even if the company pays in cash, the said money must have been deposited by the concerned employee in the bank account.
Hence three alternatives to produce the salary proof.
1. Appointment letter copy
2.Bank passbook where the monthly salary is deposited by the employee if any
3. Undertaking(service certificate) from the previous employer on request which could be a valid document
regards
bk mohanty
Director
Cypress Management Associates
mob:9937822563
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 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 suspisicion - there is something wrong somewhere. No company in its right mind would pay such amount in cash month after month, it can be unaccounted money!



This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.