24 June 2015
plz any one clarify me about the following matters :
1. Can more than 20000 in cash can be paid to creditor ?? whether this is allowed / disallowed ?
2. if any advance given suppose 200000 by real state business to purchsase any land ?
( the cost for acquiring the land is generally expenditure )
3. any advance given to employee for incurring expenditure relating to business 500000 given.
I want to know in above situations whether the expenditure is allowed / disallowed excess 20000 cash payment as per income tax act .
25 June 2015
1. no it is disallowed. as amount exceeds rs 20000/-.
2. For real estate business land is Stock in trade or purchses the expense can not be paid in cash exceeding Rs.20000/- Hence disallowed.
3. Petty cash given to employee, Here u have to check whether he make any cash [payment exceeding Rs. 20000/- in a day to the same person. If yes the Disallowed.
CAclubindia
