Expenses cash payment
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
30 September 2011
can a private company can made cash payment of salary of 10000 per month for six month. Also if some expenses first paid by directors and lateron paid by company to them in cash exceeding 200000 attract income tax provisions.
if paid in cash what are consequences
if paid in cash what are consequences
30 September 2011
Yes cash payment of salary for an amount less than Rs. 20,000/- can be made.
If some expenses have been incurred by directors, and thereafter the company is reimbursing the same,it should be ensured that the cash payment does not exceed Rs. 20,000/-.
Failure to do so will attract the provisions of Section 40A(3) and the expense will be disallowed.
If some expenses have been incurred by directors, and thereafter the company is reimbursing the same,it should be ensured that the cash payment does not exceed Rs. 20,000/-.
Failure to do so will attract the provisions of Section 40A(3) and the expense will be disallowed.
Querist : Anonymous
Querist :
Anonymous
(Querist)
30 September 2011
as the total salary payment exceed 20000 i.e. rs. 60000 in a year. can the same paid in cash is permissible. please guide
thanks in advance
thanks in advance
30 September 2011
Individual payments are considered for the purpose of Section 40A(3) and not the total payments.
The salary has been paid in respect of individual wage bills, so no disallowance.
The salary has been paid in respect of individual wage bills, so no disallowance.
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