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.
CAclubindia
