Section 40a(3)_applicability for reimbursement
Querist : Anonymous
As per Sec 40A(3), any payment made to a person exceeding Rs. 10,000 is disallowed for deduction for tax calculation.
However, in case cash payment is made to an employee in the form of reimbursement of office expenses exceeding Rs. 10,000 (Es. Rs. 15,000) in respect of 5 different expenses each of 5 expenses which were less than Rs. 10,000. Will the company get deduction for such reimbursement (booked as expense by company)?
Thanks in advance