Cash salary more than 20000
This query is : Resolved
varun gupta
(Querist)
08 June 2009
If a company pays Wages in Cash to its workers totalling Rs 100000/- in a single day but not single person gets more than Rs 20000/-. Will this expense be allowed or not? What if Company first transfers the amt to one of its staff as Imperest to Staff and then salary payment entry is routed through his Imperest A/c?
08 June 2009
Section 40A(3) read with rule 6DD disallows expenditure if payments in excess of Rs.20000 is made otherwise than by way of crossed cheque/dd . The word payment is important. If payment to any worker does not exceed Rs.20000 though the overall expenditure on wages account is Rs 100000 on a single day , the entire expenditure is deductible.
Manmohan ACA, CS
(Expert)
08 June 2009
yes, the sum will be allowed
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- EPF ECR NEW FILE SEP 17TH 2026
- PTRC Show Cause Notice on Email
- Utilisation Fy 25-26 TDS challans in Fy 26-27 TDS Return
- Capital Gail Exemption Certificate
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- TAX AUDIT ON PROFESSIONAL INCOME
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- Import of Software Service.
- EPF ECR NEW RULES Sep 17th 2026
- Taxation of crypto futures in India Fy 2026- 2027
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Unable to File TDS Q2 Return – New TRACES Portal Error
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
