Payment exceeding rs 20,000/- in cash

This query is : Resolved

shashank (Querist)
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12 September 2012 Hi

Can any one tell me.

Is amount exceeding Rs 20,000/- in cash can be paid as advance to employee of company.

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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12 September 2012 Yes, As Advance No Issue.

Only Issue is Any Expenses Paid.
But if You Adjust Same With Salary Then Salary Will be Disallowed.

Apart From This, Any Loan u/s 269ss Exceeding 20k in Cash Also Attract Penalty.
But Advance to Staff Doesnt Attract u/s 269SS Provided You Dont Adjust That Advance With Salary by Journal.

shashank

shashank (Querist)
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12 September 2012 Thanks ayush

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