24 October 2009
You collect from your company in the form of cheque and you should keep these records for eight years alongwith all bills and supportings.
If the amounts are huge you have to visit department for notice other than that there are not complications involved.
If you are spending this and you are part of company like director etc then you can spend, if you are only employee other that that you have no other relationship with company it is advisable to stop this type of transaction.
24 October 2009
Such practice very common and in vouge.
To take an example : While on official tour, the employee sattles the lodging & boarding bills and take reimbursement thereof. It does not make any difference, whether the hotel bill(to take an example) is sattled by way of cash, debit card or credit card.
Just take care to disclose the facts in your income tax return, if the transaction exceeds the threshhold limit.
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