Petty cash expenditure exceeding 20,0000 by cash

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Querist : Anonymous (Querist)

18 December 2013 Does Petty cash expenditure exceeding 20,000 by cash in a single day acceptable or not?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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18 December 2013 Yes, acceptable. Because of petty cash expenditure means expenditure met for misc.items not for a single item. In case if you expended more than Rs.20000 cash for a single item through petty cash then it may be disallowed according to the section 40A(3).

OM SAI SRI SAI JAI JAI SAI

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