40A(3) amount exceeding 20000

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CA Deepak Chhabra (Querist)
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02 January 2009 if the amount given is more than 20000 for different bills, whether it will attract the above section .For example-
If a employee brings the following bills-
Telephone expenses-5000
Business promotion expenses-10000
Medical expense-10000 the whole amount paid by the company ie 25000 .Whether it will attract the above section
Please reply as soon as possible.

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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02 January 2009 from A.Y. 2009-10 if the aggregate payments to same person exceeds Rs. 20,000 in a single day in cash then the entire amount of such payments will be disallowed. If you will pass the single entry or different entry in the same date, the entire amount will be disallowed.

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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02 January 2009 Please pay the above amount in two dates.

Ram Avtar Singh

Ram Avtar Singh (Expert)
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02 January 2009 its all Exps. made on behalf of company by an employee. so treet as accounting entry.
telephone exps. dr 5000.
cash cr 5000

business promotion exps. dr 10000
cash cr 10000

likt that.