Cash Salary

[Omeir]

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.

[danishayub_76]

Dear!

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.

Regards,

[Omeir]

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.

[awaisaftab]

Mr. Omair you are right under section 21 the salary upto Rs. 15,000 can be paid in cash.