Payment exceeding rs 20,000/- in cash
This query is : Resolved
12 September 2012
Hi
Can any one tell me.
Is amount exceeding Rs 20,000/- in cash can be paid as advance to employee of company.
Can any one tell me.
Is amount exceeding Rs 20,000/- in cash can be paid as advance to employee of company.
CA Ayush Agarwal
(Expert)
12 September 2012
Yes, As Advance No Issue.
Only Issue is Any Expenses Paid.
But if You Adjust Same With Salary Then Salary Will be Disallowed.
Apart From This, Any Loan u/s 269ss Exceeding 20k in Cash Also Attract Penalty.
But Advance to Staff Doesnt Attract u/s 269SS Provided You Dont Adjust That Advance With Salary by Journal.
Only Issue is Any Expenses Paid.
But if You Adjust Same With Salary Then Salary Will be Disallowed.
Apart From This, Any Loan u/s 269ss Exceeding 20k in Cash Also Attract Penalty.
But Advance to Staff Doesnt Attract u/s 269SS Provided You Dont Adjust That Advance With Salary by Journal.
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