Petty cash

Petty cash of Rs.11000 was given to employee as cash cor travelling expenses and he was used tgat for 5 days for various expenses is it disallowed as expense
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Quick Summary
This discussion explores whether petty cash disbursed to an employee for travel expenses is a deductible business expense under Section 37(1) of the Income Tax Act. The general rule states that expenses incurred for business purposes are allowable, while personal expenditures are not. The key consideration is whether the Rs. 11,000 spent over five days was genuinely for company business.

SECTION 37(1): allowable if it expensed for company purpose, disallowed if it is related personal expenditure.

SECTION 37(1): allowable if it is expensed for company purpose, disallowed if it is related personal expenditure.

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