Salary paid to Directors in Cash
This query is : Resolved
12 June 2008
Hi Friends,
Please resolve my problem.
A company was newly formed and they are paying salary to their directors in cash exceeding Rs.20000 otherwise than by an account payee cheque and directors withdraw cash from the bank. Then it will attract disallowance of Section 40(A)(3) or not.
Please resolve my problem.
A company was newly formed and they are paying salary to their directors in cash exceeding Rs.20000 otherwise than by an account payee cheque and directors withdraw cash from the bank. Then it will attract disallowance of Section 40(A)(3) or not.
Shyam Lal Naik
(Expert)
12 June 2008
It will.
Any expenditure paid in cash in excess of the threshold limit will be disallowed. Directors remunaration is no exceptiion.
Any expenditure paid in cash in excess of the threshold limit will be disallowed. Directors remunaration is no exceptiion.
C.A Rohit Gambhir
(Expert)
12 June 2008
Agreed
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