Section 40a(3)
This query is : Resolved
Priti Jain
(Querist)
04 October 2012
Hi,
My query is that:
whether ex gratia payments made in cash & that too above Rs. 20,000/- will be disallowed u/s. 40A(3). If not, then please give some case law if available for my reference.
Please reply asap...
My query is that:
whether ex gratia payments made in cash & that too above Rs. 20,000/- will be disallowed u/s. 40A(3). If not, then please give some case law if available for my reference.
Please reply asap...
CA Ayush Agarwal
(Expert)
04 October 2012
Yes, You can Make Payment in Cash Beyond 20000 But Not Exceeding 50000.
Read These Lines.
where any payment is made to an employee of the assessee or the heir of any such employee on or connection with the retirement retrenchment resignation, discharge or death of such employee, on account of gratuity, retrenchment compensation or similar terminal benefit and the aggregate of such sums payable to the employee or his heir does not exceed fifty Thousand rupees; -
Read These Lines.
where any payment is made to an employee of the assessee or the heir of any such employee on or connection with the retirement retrenchment resignation, discharge or death of such employee, on account of gratuity, retrenchment compensation or similar terminal benefit and the aggregate of such sums payable to the employee or his heir does not exceed fifty Thousand rupees; -
Priti Jain
(Querist)
04 October 2012
But this statement pertains to the terminal payments like gratuity etc.
if it is paid to the employees who is in continuous service then what is the status?
if it is paid to the employees who is in continuous service then what is the status?
CA Ayush Agarwal
(Expert)
04 October 2012
No, In That Case Not Exceeding 20000 in Cash.
Some Options are Available Like:-
Employee on Not More Than 15 Days Outside Visit for Company Purpose .
Payment on Sunday or Holiday.
But These are Debatable Issue.
Conclusion is Payment Cant Made in Cash.
Some Options are Available Like:-
Employee on Not More Than 15 Days Outside Visit for Company Purpose .
Payment on Sunday or Holiday.
But These are Debatable Issue.
Conclusion is Payment Cant Made in Cash.
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