For section 40a(3)

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Jay Sata

Jay Sata (Querist)
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18 October 2012 can i make the salary payment by way of cash to my employee of Rs. 35000/-

Sunny Sonwal

Sunny Sonwal (Expert)
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18 October 2012 According to Rule 6D – Payment of More Than Rs 20,000/- in Cash in a day to Single person

Rule 6D Of The Income Tax Rules Rule Deals With, Cases and circumstances in which a payment or aggregate of payments exceeding twenty thousand rupees may be made by a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft.

Jay Sata

Jay Sata (Querist)
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18 October 2012 than can i pay or not???

Jay Sata

Jay Sata (Querist)
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18 October 2012 than can i pay or not???

Sunny Sonwal

Sunny Sonwal (Expert)
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18 October 2012 Ofcorse not, By law.

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CA Prashant Gupta

CA Prashant Gupta (Expert)
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18 October 2012 you can't pay more than 20,000/- cash as salary. if you are doing so then this expense will be disallowed.

Jay Sata

Jay Sata (Querist)
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19 October 2012 k sir can i give them advance for any single purpose more than 20,0000/-

CA Pooja Agarwal

CA Pooja Agarwal (Expert)
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19 October 2012 it will be dissalowed for income tax purpose u/s 40A(3)

CA Prashant Gupta

CA Prashant Gupta (Expert)
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19 October 2012 No you can't give advance more than 20,000/- for a single purpose.
you can give advance more than 20,000/- but all expense which are adjusted with that must be less than 20,000/-

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