payment above 20000

This query is : Resolved

AMIT AGGARWAL (Querist)
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21 December 2009 if we pay cash of more then 20000 to an employee and debit his imprest a/c
after that employee incurs expenses
case 1 of more than 20000
case 2 upto 20000
is it disallowed in both the case?

and also if we pay cash upto Rs 20000
and debit his imprest a/c and after that he incur expenses of more than Rs 20000
is it disallowed ?

CA Prashant Gupta

CA Prashant Gupta (Expert)
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06 March 2010 if exp is more than 20000/- then disallowed but if exp is till 20000/- and rest is refund or use for other exp then allowed.
if you pay cash 20000/- when exp is more than 20000/- then also allow. but rest payment will be made next day in cash.