Cash payment of more than rs 20000/-

Cash payments are made by the employee and the same are being reimbursed. It is not the auditee making the cash payments. In the books of the auditee, employee shall be a creditor for expenses and the same are being settled in bank mode. Eventually the expenses are not paid in cash by the entity and hence there cannot be any dissallowance. 

However mention this in the 40A(2) decleration. 

Thank you very much CA Reshma

This was indeed helpfull