Stamped receipt for salary disbursement through bank

If the payment is in cash, it is necessary. IF it is through bank, a written mandate/authority issued by the employee, giving the bank particulars would suffice.

For cash payment of salary above Rs.5,000, revenue receipt is necessary. If the salary is eceived through Bank no revenue receipt is required to be given by the employee. Direct deposit of salary by the mployer in your Salary Account with he Bank, itself, is the acquittance of the employee.

PS Dhingra

Chief Executive Officer

Dhingra Group of Management & Vigilance Consultants

New Delhi-110089

Mobile: 09968076381

[dcgroup1962@gmail.com]

Mr. Dhigra,

Can you provide me the rules which mandate revenue receipts for payment of salary in cash for more than Rs. 5000/-. I think is is necessary for every amount exceed Rs. 100/- paid in cash. 

Dear Kriti Kar,

You may like to refresh your knowledge by reading the latest copy of the Indian Stamp Act 1899 with the amendment of Schedule I. The amendment effective from 10.09.1994 provides that one-rupee stamp is required to be affixed on any receipt, the amount or value of which exceeds Rs 5,000. The stamp is required to be affixed in respect of receipt which has been defined as under in Section 2(23)