disalloeance u/s 40(A)3

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priti (Querist)
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10 July 2009 Hii...

please advice is disallowance u/s 40A-3 is applicable in case of reimbursement of expenses exceeds specified limit of 20000/- against various vouchers paid in cash..

Regards,
Priti

taxindiaconnect

taxindiaconnect (Expert)
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10 July 2009 Yes it is applicable to any expenditure whether reimbursement or not. However it is not applicable to a case where the an advance of more then Rs 20 K is made to an employee who in turn submits bill for reimbursement of Rs 20K but in his bill each invoice being less then 20K for example a Advance of 25K is given, the employee submits the bill of Rs 15K for hotel stay and 10K for airfare. .