Cash Pyt exceeding Rs.20,000/-

This query is : Resolved

CA Narayan Bamaniya (Querist)
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24 May 2011 Kindly clear my doubt regarding this below mentioned case!
Case(1):-
travel advance made to company employee by company 35,000/- (By Cash)
Travel Period: From 1st Dec,2010 to 7th Dec,2010

His expense voucher (Single Voucher) is as follows:-
Lodging:- 25,000/-( For 7 Days stay paid on one day while Chekout time)
Boarding:- 3,000/-
Conveyance:-7,000/-
Total Voucher:- 35,000/-

Case (2):-
travel advance made to company employee 25,000/-(By Cash)
Travel Period: From 1st Dec,2010 to 7th Dec,2010

His expense voucher (Single Voucher) is as follows:-
Hotel Bill only25,000/-(For 7 Days stay paid on one day while Chekout time)

Case (3):-
travel advance made to company employee25,000/-(By Cash)
Travel Period: From 1st Dec,2010 to 7th Dec,2010

His expense voucher (Single Voucher) is as follows:-
Loadging:- 15,000/-(For 7 Days stay paid on one day while Chekout time)
Boarding:- 3,000/-
Conveyance:-7,000/-
Total Voucher:- 25,000/-

Whether in all above 3 cases any disallowance under 40A(3) of incometax act is made or not??

Ashok Asthana

Ashok Asthana (Expert)
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25 May 2011 Travel advance paid to employee above Rs. 20,000/- does not attract 40A(3). However the expenses against the said advance have to be supported by proper vouchers, and balance amount, if any should be returned to the Company. Expense on hotel stay is subject to the limit prescribed by the Company. Expense on conveyance also have to be justifiable.

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