04 October 2012
Hi, My query is that: whether ex gratia payments made in cash & that too above Rs. 20,000/- will be disallowed u/s. 40A(3). If not, then please give some case law if available for my reference. Please reply asap...
04 October 2012
Yes, You can Make Payment in Cash Beyond 20000 But Not Exceeding 50000.
Read These Lines.
where any payment is made to an employee of the assessee or the heir of any such employee on or connection with the retirement retrenchment resignation, discharge or death of such employee, on account of gratuity, retrenchment compensation or similar terminal benefit and the aggregate of such sums payable to the employee or his heir does not exceed fifty Thousand rupees; -
04 October 2012
But this statement pertains to the terminal payments like gratuity etc. if it is paid to the employees who is in continuous service then what is the status?
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