09 January 2016
Section 40A(3)(a) of the Income-tax Act, 1961 provides that any expenditure incurred in respect of which payment is made in a sum exceeding Rs.20,000/- otherwise than by an account payee cheque drawn on a bank or by an account payee bank draft, shall not be allowed as a deduction.
I have a doubt, when a company transfers some amount to Employee Imprest A/c and Employees paid in cash in excess of Rs. 20,000/ for expense on behalf of co.
09 January 2016
The payment will be covered U/s 40A(3) Please follow the link- https://www.caclubindia.com/experts/disallowance-of-cash-above-rs-20000-317050.asp
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