sec 40A(3), payment xcding 20000
This query is : Resolved
16 July 2010
suppose there is an employee whose monthly salary is 50,000 rs.
he has been paid 35000 cash as advance which will be deducted from his next month's salary
whether this 35000 cash p'ment will be disallowed u/sec 40A(3)
he has been paid 35000 cash as advance which will be deducted from his next month's salary
whether this 35000 cash p'ment will be disallowed u/sec 40A(3)
16 July 2010
This is an advance and Not an Expenses.
however the same should have been paid by Cheque.
I can suggest that break the amount in 2/ 3 different dates.
however the same should have been paid by Cheque.
I can suggest that break the amount in 2/ 3 different dates.
16 July 2010
sir as it will not be d'llowed ,why p'ment through cheque is reqd. ???
16 July 2010
it is not allowed because this exp is allowable on later date hence it will not be allowed when u will recognise it as an exp
Manmohan ACA, CS
(Expert)
16 July 2010
this 35000 cash p'ment will be disallowed u/sec 40A(3) when it is adjusted
--------------------------
take an example
advance salary paid in March,2010 Rs. 80000 (in cash)
same adjusted with salary of April, 2010
Disallowed in P.Y. 2009-10 (A.Y. 2010-11): NIL
Disallowed in P.Y. 2010-11 (AY. 2011-12): Rs. 80000
--------------------------
take an example
advance salary paid in March,2010 Rs. 80000 (in cash)
same adjusted with salary of April, 2010
Disallowed in P.Y. 2009-10 (A.Y. 2010-11): NIL
Disallowed in P.Y. 2010-11 (AY. 2011-12): Rs. 80000
sivadas chettoor
(Expert)
17 July 2010
Advance is an asset and not an expenditure.But when you adjust the advance against salary, then it will be treated as an expenditure for which payment has been made in excess of Rs 20000.
siva208@yahoo.com
siva208@yahoo.com
17 July 2010
that means if this advance of 35,000 will get adjusted in 5 months(7,000 in each month)it will not attract sec 40A(3) ???
sivadas chettoor
(Expert)
17 July 2010
Yes Mr.sagar....
Manmohan ACA, CS
(Expert)
18 July 2010
hat means if this advance of 35,000 will get adjusted in 5 months(7,000 in each month)it will not attract sec 40A(3) ???
no, even it is adjusted on same day with different bill, No disallowance u/s 40A(3)
no, even it is adjusted on same day with different bill, No disallowance u/s 40A(3)
19 July 2010
thanx mr.manmohan,mr.gaurav gupta,mr.sivadas & srikant sir.....
i hope u'll all help me like this in future also......
i hope u'll all help me like this in future also......
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