sec 40(A)(3)
This query is : Resolved
anand jayaram
(Querist)
06 November 2009
whether advance to employee of Rs 25,000/- for official tour expenses attract disallowance u/s 40A(3)?
CA.SHAHZAD SAYYED
(Expert)
06 November 2009
Dear Anand
Sec 40A(3) attracts only if there is payment of any items which comes under Trading and P&L A/c in excess of Rs.20000, since in your case there is advance which is not expence so u can give advance of any amount
Sec 40A(3) attracts only if there is payment of any items which comes under Trading and P&L A/c in excess of Rs.20000, since in your case there is advance which is not expence so u can give advance of any amount
06 November 2009
agree
Sandeep Kumar Sahu
(Expert)
07 November 2009
Agreed with Shahzad but one thing you have to take care of Sec 269SS of Income Tax Act. It may come under Tax Audit.
CA Deepak S
(Expert)
07 November 2009
In opinion if at the time of claiming the actual expenditure if the same exceeds Rs20000 then it will atract 40A(3)
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