Hi,
1) If the cash is paid to any person as advance for expenses exceeding Rs.20,000/- whether it attracts Sec. 40(A)3 ?
2) If the cash is paid to an employee as advance/loan exceeding Rs.20,000/- whether it attracts Sec. 40(A)3 ?
Please reply as soon as possible.
Wani
Wani
Dear Wanishree,
1) Sec 40A(3) will be attracted in the year in which expenses are claimed...Like Advance given in 2008-09, but Expenses are booked in FY 2009-2010 then 40A(3) will apply in FY 2009-2010.
2) Friend Ayush is rite..........
CAclubindia
