24 April 2019
Dear Expert, As per IT Act, under section 40A(3) the payment made through cash above Rs.10000/- is disallowed for any expenditures. Can it allowed, If cash payment show in advance (As loan in someones account) and adjustment entry will pass for the same expenditures which is above Rs.10000/-.
Pls. suggest the accounting treatment for cash payment except the payment mode by cheque, demand draft, NEFT etc.