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Proof of expenses

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Querist : Anonymous

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Querist : Anonymous (Querist)
24 September 2016 Hello All
I need yours valuable advice on the proof of expenses in income tax basically i am running small business wherein i have to disburse the salaries to all employees
but for that we generally made the salary
voucher with duly signed by employee as proof of salary expenses. Please let
me know weather salary voucher is enough as proof in case of scruitny,

Thanks & Regard
Mohit Agarwal

24 September 2016 Yes salary vouchers are enough, if u r paying salary in cash (upto 20K, to a single person, in single day). One thing I'll suggest(if u think fit to do), to make salary slips of all the employees, and get it signed by them for ur record. One more thing u can do is to maintain salary sheet of all the employees, for both ur official an income tax purpose.

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Querist : Anonymous

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Querist : Anonymous (Querist)
24 September 2016 Sir,
One CA has suggest me that on the salary voucher if you pay salary more then 5 thousand you Need to affix the revenue stamp of Rs. 1




26 September 2016 Not only on Salary but, u must affix a revenue stamp on each and every exp in cash which is more than 5K.

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Querist : Anonymous

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Querist : Anonymous (Querist)
26 September 2016 Sir, pls clarify weather revenue stamp to be to affix on payment voucher or on receipt voucher,2) even i have seen
in many reputed companirs they does not affix any revenue stamp neither on payment nor on receipt voucher

26 September 2016 Income Tax Dept. ask to affix revenue stamp on expense voucher only in excess of 5000 (in cash) to a single person in a single day. No need to affix on income voucher. There are many things which assessee dosent' follow, but rules are rules. There are many big companies which have black money too, so what's ur excuse in that?

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Querist : Anonymous

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Querist : Anonymous (Querist)
26 September 2016 Sir,
I only want to know suppose my case
Selected for secruitny and AO has asked me to produce the salary vouchers for the same weather AO will accept the voucher wherein revenue stamp was not affixed inspite payment having excess 5000/- or not,

26 September 2016 Whats the issue in affixing stamp of value of Re. 1. U r incurring expenses in thousands, and u r facing issue for just a revenue stamp. If IT dept. find that error, they may impose a penalty on u, for violation of rules. Yes, they also may reject the vouchers for not following the rules.




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Querist : Anonymous

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Querist : Anonymous (Querist)
26 September 2016 Sir,
Actually my CA has said no where income tax it is written affix the revenue stamp is mandatory on payment of excess 5000 therefore i am bit confused he has also said you can also avoid to affix the revenue stamp suppose you have paid Rs. 10000 to any one then you can show it in part payment i.e. 5000, 5000 hence No need to affix it,

26 September 2016 Yes, its for 5K only, but if the amount exceeds 5K then u must affix revenue stamp. In the trailing query U told that CA told u to affix revenue stamp, and now u r saying that ur CA told not to do. Ar u not contradicting urself?? Well we are here only for advice, u'll follow it or not it only depends on u. And one thing more, as per my experience non of the CA will told u to break the payment in parts to avoid revenue stamps.

05 October 2021 The intention of the CA to break the payment in part is to save yourself, if you had forgotten to fix stamp on any payment over 5K.



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