40a(3)

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Querist : Anonymous

Querist : Anonymous (Querist)

10 January 2012 Dear Sir,
1) We have Reimbursed Rs. 40,000 in cash towards Out of Pocket Exp. is it allowable as per IT prov. or disallowed u/s 40A(3)

2) Paid Rs. 80,000/- towards Stamp duty ( franking ) to bank , allowable......?

Thanks:

Rahul

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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10 January 2012 1. Reimbursement of Rs.40000 out of pocket expenses will be dis allowed u/s.40A(3) if the single expenses more than Rs.20000 per day

2. Stamp duty payment by cash is allowable since the govt. payment

Querist : Anonymous

Querist : Anonymous (Querist)

12 January 2012 Ramesh,

It means if employee incures expenses less than 20k diff. dates & claims reimbursement of whatever exp. he incures say 50k, in such case Co. can pay entire of reimbursement on single day in cash.

My understanding is that even each exp. is < 20,000/- & consolidated amt exceeds Rs. 20,000/- then co. cant' reimburse it in cash.

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