Cash Payment Allowability

As it is not an expenditure falling under 40A(3), it's allowable. No issues. Don't worry

Employee Advance is not applicable in Sec 40(A) 3.
It is a seperate ..issue altogether.

Tarun, payment of advance to employee in cash upto 20000/- is okay.

If more, than 269SS will apply to Employee and subsequent penalty.(100% )

So take care.

3] Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, or use of electronic clearing system through a bank account 39[or through such other electronic mode as may be prescribed], exceeds ten thousand rupees, no deduction shall be allowed in respect of such expenditure.

section 40A(3) speaks about any expenditure... so if the assessee treats the advance salary as expenditure and claimed it as deduction in p & l account, then 40A (3) is squarely applicable.

moreover, instead of claiming it as expenses if the assessee shows the same as asset in balance sheet and later adjust the same towards salary expenses section 40A (3A) will attract.
correct me if I'm wrong

How much cash sell allow to one day to one person

any record required for cash sell

A person can accept CASH RECEIPT upto Rs. 1,99,999 in a single day from 1 person. If CASH RECEIPT of Rs. 2,00,000 or more is involved, then 100% Penalty imposed u/s 269ST of the Income Tax Act 1961.