Can we deduct TDS on cash payment?

TDS will be deducted by the payer while making the cash payment over and above Rs 1 crore in a financial year to the payee. If the payee withdraws a sum of money on regular intervals, the payer will have to deduct TDS from the amount, once the total sum withdrawn exceeds Rs 1 crore in a financial year.

Can salaries be paid in cash?

Yes,they can pay salaries in cash but as per income tax law you cannot pay anyone salary more than 20000 in cash in a month. Hence if you are being paid more than that you can be questioned and so can your company.

When salary is paid in cash?

It is not mandatory that the salary payment must be through cheques. But under section 40A(3), an expenditure of more than Rs 20,000 by cash per day is not allowed for the payer. So, nobody should pay salary in the form of cash. The amount can be included in Form 16.

Is it compulsory to deduct TDS on salary?

Under Section 192, TDS is deducted at the time of actual payment of salary and not during the accrual of salary. Tax will also be deducted if your employer pays salary in advance to you or you receive arrears from him. In case your estimated salary is not more than the basic exemption limit, TDS will not be deducted.

Is there any limit on cash withdrawals?

Cash withdrawal limit for self using cheque is capped at ₹1 lakh while cash withdrawal limit by third party (only through cheque) is capped at ₹50,000. At the non-home branch – no charges will be levied for cash transactions up to ₹25,000 per day. For third party transactions, the limit has been set at ₹25,000 per day.

Is there a limit on cash withdrawal?

What Is Your ATM Withdrawal Limit? Daily ATM withdrawal limits can range from $300 up to $2,000 a day, depending on the bank and the account; some banks charge different amounts depending on which tier of service you’ve signed up for.

Can salary be paid in cash more than 10000?

In nutshell, payments made in cash or through bearer cheque can be disallowed only. In this case the total amount paid in a day to one person exceeds Rs 10,000 and the payment has been made through a bearer cheque or cash.

Can salary be paid in cash above 20000?

10 min read. Income Tax law provides for permissible cash expenses as deductible expenses for cash payments exceeding Rs 20,000 in a single day i.e. payment is made otherwise than by electronic clearing system or an account payee check or an account payee bank draft won’t be permitted as a deductible expense.

Can salary be paid in cash above 10000?

Budget 2017 Update: In order to disincentivise cash transactions, it is proposed to amend the provisions of Section 40A of the Income Tax Act to provide the following: 10,000 in a single day i.e. any payment in cash above Rs. 10,000 to any person in a day shall not be allowed as deduction in computation of Income.

Can we pay salary in cash above 10000?

What is Tax Deducted at Source (TDS)?

Tax deducted at Source is income tax deducted by the Employer when paying salary to the employee. The Employer is paying tax to the government on behalf of the employee. We will understand some basics before learning the TDS on Salary Journal Entry. Employer is under obligation to deduct tax while paying salary to employees.

What happens if TDS is not paid by employer?

As your employer has not paid the tax deducted from your salary, there will be no Form 16 with details of the payment of TDS.On the administrative ground, the lower authorities will not give credit for the TDS not paid by the employer. You can file the appeal against the or

What is section 194j and TDS deducted on professional fees?

1. Accounting Entries for Professional payment under section 194J and TDS deducted thereon @ 10\%- (i) Professional fees paid to XY & Associates, firm of Chartered Accountant of Rs. 25,000 during the year, if TDS not Applicable- (Being amount of fees paid to M/s XY & Associates, firm of Chartered Accountant)

How to deduct TDs on sale of property in India?

TDS needs to be deducted u/s 194-IA at 1\% on entire sale consideration and pay it before last of day of succeeding month. Thus if you purchase a property in June 2016 then for Rs. 80lakhs then you have deduct tax of Rs. 80,000 and pay it before 31st of July 2016. There is no need to apply for TAN which is mandatory to deduct tax.