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Advance payment more than 20000/-

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Querist : Anonymous

Querist : Anonymous (Querist)

25 January 2013 we paying amout more than Rs.20000/-to our one emplyee, this amount he is settling for vehicle fuel payment after which from his account(advance a/c)this expense is deducting
my qustion is that in this case income tax disallowance of expenditure for paying more than cash payment of rs.20000/- will cause any problem

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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25 January 2013 As advance has been given to meet the expenses on company's account on time to time , and it is nothing like loan or deposited accepted by the employee, so there seems to be no problem in such cases. The expenditure which is being incurred by the employee is in part and if amount is properly debited (below 20000)to the expenses account, there will be no disallowance.

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