16 July 2010
suppose there is an employee whose monthly salary is 50,000 rs. he has been paid 35000 cash as advance which will be deducted from his next month's salary whether this 35000 cash p'ment will be disallowed u/sec 40A(3)
17 July 2010
Advance is an asset and not an expenditure.But when you adjust the advance against salary, then it will be treated as an expenditure for which payment has been made in excess of Rs 20000.