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Cash Salary
12-11-2011, 01:55 PM,
Cash Salary
I wish to know the law regarding paying cash salary to the employees of
1) sole propritorship
2) AOP
3) ltd companies.

Is there any law giving a particular cut off for cash payment of salary, or we can give cash salary to the employee, no matter what the amount.

Would appreciate an early response.
12-12-2011, 02:41 PM,

It depends upon the organizational policy of cash disbursement limits, whether its a salary, expense or any other payment. For Example a company has policy of cash payment limit of Rs.10,000/- beyond which a crossed cheque shall be issued.

12-12-2011, 05:50 PM,
Does it mean that FBR or government has no issues with whomever we make the payment to in any form?
As far as I recall I read once that the cut off for paying cash salary is 15,000. If it was more than that then the payment would have to be by a crossed cheque.
12-13-2011, 03:00 AM,
Mr. Omair you are right under section 21 the salary upto Rs. 15,000 can be paid in cash.

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