30 April 2012
Payment of Salary in form of cash as well as Bank payment to the same person. example : Employee A is getting a salary of Rs. 40000/-, 20000 in form of Cash & 20000 in Cheque, is it ok if i am showing in my books salary paid to A Rs.40000 , I also have cash balance in my books & deducted TDS also
30 April 2012
As per section 40A(2,expenses incurred more than 2ok in cash, than whole exp disallowed. But if you paid 20k in cash and 20k in A/c Payee cheque than its ok.
CAclubindia
