Dear Sir,
employer filed his itr under section 44AD.he paid cash salary Rs.20000 to employee in each month can employer and employee face and issues In future.
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Cash Salary from employer to employee
Replies (4)
Even though you are not filing Profit and Loss account and Balance sheet in ITR 4 ( section 44AD) , question will not arises of disallowance of Cash expense look like , however Cash and Equivalents including sundry debtors , sundry Creditors , stock are mandatory information in ITR 4 , so please check accordingly how section 40(A)(3) may applicable .
No issues, No question arise section 44AD no expense disallowed and no no expense allowed.
It is perfectly within the the boundaries of the act for an AO to disallow such cash expense.
so small businesses having turnover less than 2 crores also have to take care of disallowance provisions.
however there may be some judgements against my view.
so small businesses having turnover less than 2 crores also have to take care of disallowance provisions.
however there may be some judgements against my view.
40A is non obstante section. moreover, all expenses are deemed to be allowed under 44AD only subject to the conditions mentioned the respective sections. hence, in case of scrutiny, the cash payments in excess of rs. 10000 will be disallowed
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