yes it will be attracted if single employee is paid more than 10000. if payment to single employee is less than 10000 but aggregated is more than 10000 then no disallowance
As per section 40A (3) no company make a payment of Rs. More than 10000 in a day. As per section 40A. if company make a payment of Rs. More than 10000 in a day then it will be disallowed by income tax department. It will not be counted in expences. It also applicable for purchase of asset, if asset purchase value is more than 10000 then you can make payment in cash. If paid in casg then it will not be counted. It will be disallowed.
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