Disallowances

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2010 In which of the following situation expenses are disallowed under section 40A(3) as per Income Tax Act ,r.w Rule 6DD.

Situation 1:-
a) Day 1 IOU to Employee 50000
To Cash 50000

b) Day 10 Hotel expenses 50000
To IOU to employee 50000
(Being employee paid cash to hotel)

Situation 2:-
a) Day 1 IOU to Employee 50000
To Bank 50000

b) Day 10 Hotel expenses 50000
To IOU to employee 50000
(Being employee paid cash to hotel)

Situation 3:-
a) Day 1 IOU to Employee 50000
To Cash 50000

b) Day 10 Hotel expenses 50000
To IOU to employee 50000
(Being employee paid through credit card to hotel)

Situation 4:-
a) Day 1 IOU to Employee 10000
To Cash 10000

b) Day 2 IOU to Employee 20000
To Cash 20000

c) Day 3 IOU to Employee 20000
To Cash 20000

d) Day 10 Hotel expenses 50000
To IOU to employee 50000
(Being employee paid cash to hotel)

Situation 5:-
a) Day 1 IOU to Employee 10000
To Cash 10000

b) Day 2 IOU to Employee 20000
To Cash 20000

c) Day 3 IOU to Employee 20000
To Cash 20000

d) Day 10 Hotel expenses 50000
To IOU to employee 50000
(Being employee paid through credit card to hotel)

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

03 August 2010 Situation 1:-

If the single payment voucher exceeds Rs.20000 the expense will be disallowed

Situation 2:-

No disallowance

Situation 3:-

Single voucher provided by employee More Than Rs.20000 disallowed

Situation 4:-

Single voucher provided by employee More Than Rs.20000 disallowed

Situation 5:-

No disallowance

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

RAJ SANKLECHA

Pushkar Nagda

sachingurav

R.Prashanth

SUBASH CHANDRA BOSE

Subscribe Now

Disallowances

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA