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Loan against salary

This query is : Resolved 
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(Querist)
29 April 2013 Loan against salary given = Rs.50000
But the payment is made in cash .
Will it be allowed or should i highlight it as a query ?
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CMA Ramesh Krishnan

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CMA Ramesh Krishnan (Expert)
17 July 2013 It will be disallowed under 40A(3)

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