CCI Online Learning
What do you want to learn today?
     
CIBIL

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Cash payment exceeding 10,000


Khushboo (article assistant)     06 September 2019

Khushboo
article assistant 
 13 likes  239 points

| My Other Post

whether cash given as imprest to employeee exceeding Rs. 10,000 falls under the disallowance provision of sec 40(A)(3)?

avater

Manikanta juluri (Student)     06 September 2019

Manikanta juluri
Student 
 5 likes  107 points

View Profile | My Other Post

section 40(A)(3) of Income Tax Act provides any experience incurred in respect of which payment is made in a sum exceeding Rs10,000/- in a single day is disallowed.

avater

sabyasachi mukherjee   06 September 2019

sabyasachi mukherjee

 119 likes  3347 points

View Profile | My Other Post

this is imprest cash.
now from imprest cash if u pay rs.20000

avater

Ajit Hegde (CA - Final)     07 September 2019

Ajit Hegde
CA - Final 
 91 likes  1357 points

View Profile | My Other Post

Cash given as imprest doesnt come under disallowance. But if the employee spends more than 10,000 in cash for a single payment then the disallowance is attracted.

avater

sabyasachi mukherjee   07 September 2019

sabyasachi mukherjee

 119 likes  3347 points

View Profile | My Other Post

Sec 40(A) 3 disallows expenditure paid in cash over Rs.20000.
If u pay from imprest cash that is also disallowed .
That hits the ledger....
Ajit read the provisions .

avater

Ajit Hegde (CA - Final)     07 September 2019

Ajit Hegde
CA - Final 
 91 likes  1357 points

View Profile | My Other Post

First of all, its 10,000 not 20,000. Disallowance is attracted for 'payment from' imprest cash. Not for 'payment to' imprest. Paid to employee for imprest in itself is not an expenditure. It is given for them to spend for any expenditure, for which a bill will have to be produced on incurring the expense.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  



Related Threads


Loading

Popular Discussion


view more »





Download the latest Question Papers for free

click here





Trending Tags
income tax
ca students
ca exams may 2020
newgstreturn
corporate law
itr
students
ca
epfo
esic
rbi
gst return
Union Budget
eway bill
tds
cag
VAT
ca exams
gst
taxpayers
cbdt
Service Tax
pm cares fund
csr
Info Technology

GST Live Class    |    x