payment of advance to director in cash
This query is : Resolved
05 November 2008
If an advance to a director is paid in cash of a sum exceeding Rs 20,000.00, for the expenses that he incurs on a business trip, will it be disallowed u/s 40A (3).
Also, if expenses are reimbursed, the reimbursement being more than Rs 20000 in cash will the expense be disallowed?
Also, if expenses are reimbursed, the reimbursement being more than Rs 20000 in cash will the expense be disallowed?
05 November 2008
If the payees are different and expenditure are different each less than 20000, then it will be viewed within limits. Book them as such
06 November 2008
suppose A is the director, and takes Rs 40,000 in cash as advance for expenses, then wat will be the treatment?
06 November 2008
What is relevant is the quantum of expenditure that is booked. In case the expenditure booked against this advance is, say 25000/- then it will get disallowed.
In case the expenditure booked against this advance is 15000 and balance is returned then the expenditure will be allowed
In case the expenditure booked against this advance is 15000 and balance is returned then the expenditure will be allowed
07 November 2008
If the expense is booked in the following manner :-
1. telephone - Rs 18000
2.Travel - Rs 22000
thetravel expense is incurred to-& - fro, so will it still be disallowed, as the expense was incured on 2 diff dates.
1. telephone - Rs 18000
2.Travel - Rs 22000
thetravel expense is incurred to-& - fro, so will it still be disallowed, as the expense was incured on 2 diff dates.
08 November 2008
Then 18000 will be allowed and 22000 will be disallowed.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- About TDS & Income Tax
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- Scrutiny and reopening of past returns
- Not able to file ITR
- Building tax payment deduction in rental Income
- Upload Level ValidationITR3Category of Defect B/D
- FEMA regulation Act. for inward remitance
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
