Cash payment exceeding 20000

Salary paid in cash-14000

Childeren education allowance paid-7000

Total amount booked as salary-21000

whether it is violation of section under section 40(a)

Replies (10)

yes,

becasue full salary is more than 20000

One more thing if salary paid to Mr.X is Rs.15000/- and to Mr. Y is 16000/- and both the salaries were paid in cash on same day now whether is it a violation?

DEAR,

 

IF PAYMENT MADE FOR ANY EXPENSES OF MORE THAN RS. 20,000/- TO ANY ONE PERSON IN A ONE DAY, THEN IT WILL SURELY BE DISALLOWED,

 

OTHERWISE THERE IS NOT ANY DISALLOWANCES

and what about staff advances if given in cash exceeding Rs.20000

IN MY OPINION,

 

CASH PAYMENT OF EXPENSES CAN NOT BE MADE TO ONE PERSON IN ONE DAY EVEN THOUGH NATURE OF EXPENSES IS DIFFERENT.

but nature of staff advance is not expenditure although to be adjusted against salary....

in staff advance, it is to be seen that whether the advance was not used in single expense. if that advance is used for many expense and no is more than 20000 then it is allowed

if one person salary is 15000 and other's is 16000. then you can paid both in one day in cash. because you are not paying to same person. So these exp will be treated different exp

Mr. Prashant employee has taken advance for his personal expenditure and his advance is to be adjusted against her monthly salary upto 6months...

if it is to be adusted with salary, then it must not be exceed 20,000. if salary is more than 20000.

you can give him/her cross cheque

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