Expenditure in excess of cash 20000
This query is : Resolved
24 June 2015
plz any one clarify me about the following matters :
1. Can more than 20000 in cash can be paid to creditor ?? whether this is allowed / disallowed ?
2. if any advance given suppose 200000 by real state business to purchsase any land ?
( the cost for acquiring the land is generally expenditure )
3. any advance given to employee for incurring expenditure relating to business 500000 given.
I want to know in above situations whether the expenditure is allowed / disallowed excess 20000 cash payment as per income tax act .
25 June 2015
1. no it is disallowed. as amount exceeds rs 20000/-.
2. For real estate business land is Stock in trade or purchses the expense can not be paid in cash exceeding Rs.20000/- Hence disallowed.
3. Petty cash given to employee,
Here u have to check whether he make any cash [payment exceeding Rs. 20000/- in a day to the same person.
If yes the Disallowed.
2. For real estate business land is Stock in trade or purchses the expense can not be paid in cash exceeding Rs.20000/- Hence disallowed.
3. Petty cash given to employee,
Here u have to check whether he make any cash [payment exceeding Rs. 20000/- in a day to the same person.
If yes the Disallowed.
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