Applicability of 40A(3) on advance against salary
Querist : Anonymous
rs. 30000/- given to an employee for Advance against salary during p.y. and rs. 2000/- p.m. deduct from his salary .
is 40A(3) attract on payment of rs.30000/-
IF the Amount is paid in Cash then surely Sec 40A(3) will be applicable calling for Disallowance of such amount.
Thank you,
Regards
CA. LOHITH.J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons
Querist : Anonymous
Section 40A(3) itself is the Reference as the Section is applicable wen there is any payment ( revenue in nature for your understanding )in excess of Rs.20000/- in cash.
there are 'n' no. of case laws, please log on to "www.ITATonline.com" or "www.Incometaxindia.gov.in"
Regards
CA. Lohith. J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons
Querist : Anonymous
so can u please refer a particular case for make my contetion strong.
Can you please clarify whether it is
"Advance Salary" or "Advance Against Salary"
Regards
CA. Lohith. J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons
Querist : Anonymous
If it is Adv Against Salary, then there will no question of such amount being claimed as a dedcution or disallownace of the same as it will be showed as " Advances to Employees" under Current Asset.
It cannot be termed as payment & therefore Sec 40A(3) is not applicable.
Further what ever deductions regularly from the employees salary, it will be in " Advances to Employees A/c" & not in P&L A/c.
Hope i have replied your Querry.
Regards
CA. Lohith. J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons
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