Dear Members,
Whether payments made to employee being reimbursement of expenditure for business in excess of Rs.20,000 on a single day is to be disallowed U/s.40A(3) even when the employee has not made the payments in excess of the limit which incurring the expenses.
Regards,
Dharmaraju
NO IT WILL NOT BE DISALLOWED.BUT FOR THIS U HAVE TO ROUTE IT THROUGH IMPREST A/C SYSTEM
Agree with Mr Ritesh, imprest system is generally used for this.
hey dharmaraju It will be allowed as deduction if expenditure is less then Rs 20000 through imperest system of accounting
I DO AGREE WITH PANKAJ
Praveena,
Rs. 50000 given is not a expense. It is advance.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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