If an advance of Rs. 50000 in cash is given to an employee for travelling purpose and the employees pays cash for ticket amounting to Rs. 25000, will ticket expense be disallowed u/s 40A(3) to the company?
Menu
Sec 40a(3)
Replies (3)
Yes. Disallowed u/s 40A(3).
Why would it be disallowed? As per rule 6 DD book adjustments are allowed..kindly explain me d reason for disallowance
book adjustments as per rule 6DD means set off of different transactions.but in ur case both adjustments are relating to same transactions,i.e u give advance of rs 50000 and book entry passed as advance for travelling expenses and set off rs 25000 against advance given to travelling expenses as both are relating to same transaction it would be disallowed under section 40A(3)
Recent Topic
- INCOME RECEIVED FROM COMPANY FOR ELECTRIC POLLS
- ITR Processing By CPC Now Super Fast - Much apprec
- Abroad Jobs
- Professional Income in 44AD
- Presumptive taxation
- Claiming Pre Possession Home Loan Interest
- Tax on Pension from EPFO
- Indexation of Sale of Property under New Regime
- TDS ON RENT BY TENANT
- Forward tax charge gst related
Related Topics
CAclubindia
