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CASH advance to employee

sunil mandal (63 Points)

15 July 2020

Can I give cash advance of more than 20000 to my employee which would be adjusted from his salary in the time to come.?

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9 Replies

Ashwin Kumar (1229 Points)
Replied 15 July 2020

Its advance against salary. There is no issue in doing so as long as you are recovering it from the salary of the employee. However its better to do in bank channel instead of cash, since you may attract 40(A)3 disallowance.

RAJA P M ("Do the Right Thing...!!!") (127058 Points)
Replied 15 July 2020

Yes... You can give.

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hitesh banshilal porwal (article) (49 Points)
Replied 15 July 2020

Such a exps is disallowed if your entity required to do audit.

RAJA P M ("Do the Right Thing...!!!") (127058 Points)
Replied 15 July 2020

No... it's not disallowed...

CA Raj Doshi (Practising CA) (8723 Points)
Replied 15 July 2020

Daily limit of cash payment to one person is 10000. So it will be disallowed. Give on 2 different dates.

Atul M (aaa) (729 Points)
Replied 15 July 2020

It is admissible in case of the amount given on two different dates.

RAJA P M ("Do the Right Thing...!!!") (127058 Points)
Replied 15 July 2020

What is in sec 40A(3)...?

Can anyone will give the details or law to Herr...?

please...

RAJA P M ("Do the Right Thing...!!!") (127058 Points)
Replied 15 July 2020

What is in sec 40A(3)...?

Can anyone will give the details or law to Herr...?

please...

ITS MEAN GIVE THE SECTION'S RULE HERE OR ONCE AGAIN REFER THE SECTION WITH QUERY...

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 18 July 2020

As per Sec 40A(3) expenses in excess of Rs.10,000/- in cash is disallowed. So, it's better to give amount less than 10,000/- or give on two different date ( i.e within limit of 10,000/- per day)