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Disallowance

This query is : Resolved 

28 August 2008 An employee who paid by cash in excess of 20000/- against one single invoice, to any hotel as lodging expenses, and he gets the same reimbursed from his employer, will that expenses get disallowed under Sec 40(A)(3).

Please clarify more clearly.

28 August 2008 if reimbursement is in excess on Rs. 20000 by one single voucher then this will hit sec. 40(A)(3) and if otherwise the it won't

28 August 2008 Okay Say If Employee Paid Cash In excess of 20000/- to the hotel but the company paid the employee in two instalments of less than 20000/-.
Then??

02 April 2012 The mode of payment has to be seen from the point of view of the company and not the employee.

If the company has reimbursed the amount through cheque, then the expense shall NOT be disallowed.

If the company has reimbursed the amount by cash, then the expense shall be disallowed.


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