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Cash payment limit for salary?
12-29-2009, 08:32 PM,
#1
Cash payment limit for salary?
What is the cash payment limit for salary etc.?
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12-30-2009, 02:16 PM,
#2
 
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by yasarsheikh</i>
<br />What is the cash payment limit for salary etc.?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
according to my knowledge it is Rs.12,000/=
please correct me if i m wrong.
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12-30-2009, 08:13 PM,
#3
 
hi

the limit is 10 thousand if the salary of your employee is more than 10 thousand than you will have to pay the salalry through cheque instead of Cash ok.
Thanks

Bes regards

rifi


<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by yasarsheikh</i>
<br />What is the cash payment limit for salary etc.?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Reply
12-30-2009, 11:38 PM,
#4
 
Dear,
Salary of an employee to the maximum limit of Rs. 15,000 may be paid in cash, however, if the amount of salary exceeds Rs. 15,000 then the same should be paid by a cross cheque otherwise it will be treated as inadmissible expense.

However, the said limit of Rs. 15,000 is restricted to salary payment only, in case of other expense (other than salary) maximum limit to pay in cash is Rs. 10,000.

Best Regards,

Faisal
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12-31-2009, 07:21 PM,
#5
 
the cash payment in case salary to employee is limit is Rs. 15000 amended in current year
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12-31-2009, 07:29 PM,
#6
 
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by faisal_desperado</i>
<br />Dear,
Salary of an employee to the maximum limit of Rs. 15,000 may be paid in cash, however, if the amount of salary exceeds Rs. 15,000 then the same should be paid by a cross cheque otherwise it will be treated as inadmissible expense.

However, the said limit of Rs. 15,000 is restricted to salary payment only, in case of other expense (other than salary) maximum limit to pay in cash is Rs. 10,000.



<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote"> i agree
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01-02-2010, 02:19 PM,
#7
 
Aoa,
Can anyone tell me its exact wording...?


-imran
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01-10-2010, 10:47 PM,
#8
 
waiting for exact wording..?
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01-10-2010, 10:56 PM,
#9
 
Dear Imran Kham,

I also wating exact wording. Inshallah, I will reply to you withing three days.

Shakeel (Lucky)
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01-12-2010, 04:39 PM,
#10
 
here is my concept, kindly confirm it.

http//www.fbr.gov.pk/tpef/brochures/2009/Salary.pdf

Go through the link & check basic exemption of I.tax slab that is Rs 180k for male & Rs 240k for females taxpayers & divide it with 12 months, whatever is the answer that will be the maximum limit of cash payments.


-Ikhan
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07-10-2010, 05:31 PM,
#11
 
As per my understanding this limit of Rs. 15,000 for salary payment is cash was for the period when taxable income was starting from 200k and now when it is starting from 300k it would be 25,000 as no tax is to be deducted from the payment of 25,000 to an employee. If anyone opposes please comment. Need to be confirmed so that we could move forward with a thorough understanding.
Please comment on it.

Regards,
Shahzad
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07-10-2010, 09:39 PM,
#12
 
Section 21- Deductions not allowed.- Except as otherwise provided in this Ordinance, no deduction shall be allowed in computing the income of a person under the head “Income from Business” for -

(a) any cess, rate or tax paid or payable by the person in Pakistan or a foreign country that is levied on the profits or gains of the business or assessed as a percentage or otherwise on the
basis of such profits or gains.

(b) any amount of tax deducted under Division III of Part V of Chapter X from an amount derived by the person.

© any salary, rent, brokerage or commission, profit on debt, payment to non-resident, payment for services or fee paid by the person from which the person is required to deduct tax under Division III of Part V of Chapter X or section 233 of chapter XII, 2[unless] the person has 3[paid or] deducted and
paid the tax as required by Division IV of Part V of Chapter X.

(d) any entertainment expenditure in excess of such limits or in violation of such conditions] as may be prescribed.

(e) any contribution made by the person to a fund that is not a recognized provident fund 5[approved pension fund, approved superannuation fund, or approved gratuity fund.

(f) any contribution made by the person to any provident or other fund established for the benefit of employees of the person, unless the person has made effective arrangements to secure that tax is deducted under section 149 from any payments made by the fund in respect of which the recipient is
chargeable to tax under the head "Salary".

(g) any fine or penalty paid or payable by the person for the violation of any law, rule or regulation;

(h) any personal expenditures incurred by the person;

(i) any amount carried to a reserve fund or capitalised in any way;

(j) any profit on debt, brokerage, commission, salary or other remuneration paid by an association of persons to a member of the association.

(l) any expenditure for a transaction, paid or payable under a single account head which, in
aggregate, exceeds fifty thousand rupees, made other than by a crossed cheque drawn on a bank or by crossed bank draft or crossed pay order or any other crossed banking instrument showing transfer of amount from the business bank account of the taxpayer.

Provided that online transfer of payment from the business account of the payer to the business account of payee as well as payments through credit card shall be treated as transactions through the banking channel, subject to the condition that such transactions are verifiable from the bank statements of the respective payer and the payee.

Provided further that this clause shall not apply in the case of-
(a) expenditures not exceeding ten thousand rupees;
(b) expenditures on account of –
(i) utility bills;
(ii) freight charges;
(iii) travel fare;
(iv) postage; and
(v) payment of taxes, duties, fee, fines or any other statutory obligation.

(m) any salary paid or payable exceeding 1[fifteen] thousand rupees per month other than by a crossed cheque or direct transfer of funds to the employee’s bank account, and

(n) except as provided in Division III of this Part, any expenditure paid or payable of a capital nature.
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07-11-2010, 06:04 AM,
#13
 
under section 21, clause (m)any salary paid or payable exceeding [fifteen] thousand rupees per month other than by a crossed cheque or direct transfer of funds to the employee’s bank account
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