Payment u/s. 43(a)(3) in excess of 20000

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My Query is regarding allowability of payments in excess of 20,000/- Rs. u/s. 40 (A) (3), we are a corporate assessee and making reimbursements for expenses to our employees. The payments done to employee in a day is in excess of 20,000/- under th various heads of expenditure ie Conveyance, telephone, Business Promotion.etc .(Expenses incurred by him on various dates)  None of the expenses are in excess of 20,000/- but total payment in a day is exceeding 20,000/- .

Let me know, eheter the expenses will be disallowed u/s. 40(a)(3) or Section 40(a)(3) applies to an expenditure and not Expenditures.

Let me know that adavnce paid for expenses is covered by section 40(a)(3) or not.

 

Replies (2)

Section 40(a)(3) will not attract because it is not against single invoice.. Although you are paying to a one person in a single day but invoices are different.

Sec 40A(3) will not applicable at all if payment is made in cash for separate bills and none of them is in excess of Rs.20000........


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