22 July 2016
Dear Sir,
please tell me is there any possibility of consequences if the company has paid advance salary Rs. 50000/- to employee in cash however i have passed the following entry for the same..
Advance to employee Dr. 50000 (current assets)
To Cash..50000
pls clarify is it allowed in income tax,
Regard
Rajeev Jaiswal
22 July 2016
you mean to say...you are not claiming it as EXPENSES towards SALARY? How will you transfer the said amount to SALARY? Can you please explain?
Querist :
Anonymous
Querist :
Anonymous
(Querist)
22 July 2016
sir,
while giving 50000/- advance in Cash we have booked it in current assets side as it is advance.
Rs. 5000 PM will be trf in salary accounts.... i.e employee salary is Rs. 20000/- PM only 15000 PM will be paid to him and Rs. 5000 PM will be adjust from Advance till 10 month,
22 July 2016
http://www.incometaxindia.gov.in/_layouts/15/dit/pages/viewer.aspx?grp=rule&cname=cmsid&cval=103120000000007136&k=&isdlg=1
please follow the link for further clarification. Tell me if your case as explained above fits into rule 6DD(h) or 6DD(i).
Querist :
Anonymous
Querist :
Anonymous
(Querist)
22 July 2016
sir, neither rule 6DD(H) nor 6DD(I) will be applicable to that said employee because he is not being terminate/retire or shifted to any other place,
22 July 2016
yes. So section 40A(3) is applicable in your case, no matter whether you route the entry through current asset or otherwise.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
25 August 2016
Sir one more query, can i pay cash expenses exceed 20000 in single day, 18000 cash salary to employee and stationery purchased in cash Rs. 3500 , is it allowable exceed cash expenses 20000 in single day
26 August 2016
yes.....you can do that....the money is given on 2 different purposes, although the person is SAME.....
Querist :
Anonymous
Querist :
Anonymous
(Querist)
26 August 2016
Sir,
persons are not same its different persons, salary was given to employee and stationery was purchased from srationery's shop, my doubt is on cash payment exceed 20000/- in single day to two different persons,