Sec-40A(3) whether applicable in case of reimbursements?

Karnik

As per my opinion "REIMBURSEMENT" is also the expenses for the company and section 40A(3) is applicable for any payment "EXPENDITURE" and i think expenditure words itself says everythng.................

So payment for reimbursement should be done accordingly.............section40A(3)

hello,

employer can make payment to employee exceeding Rs20000/-other than A/c payee cheque/bankDD in following conditions-:

(i) On account of terminal benefit not exceeding Rs 50000/-

(ii)Where payment is made in to employee who is temporerily posted to any place other than normal [place of duty for more than 15 days & does not maintain his bank A/c in that place

(iii) Where pmt is made to employee (in capacity of agent) who is required to make pmt in cash for goods & services on behalf of employer.

(iv) where pmt is made on day on which banks were closed on A/c of holiday or strike