Good Morning!.
One of our employees paid Rs. 80000/- as car repair charges in cash, and he is claiming it from the company through reimbursement. As I understand above Rs. 20000/- cannot be paid in cash as per IT regulations.
What happens, if we reimburse this amount to the employee?
Also please clarrify what is disallowing as per income tax rules.
Regards/Suresh
CAclubindia
