Section 40a3 cash payment

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HIREN (Querist)
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21 March 2015 Can limited company give advance of Rs.50000.00 in cash to its employee for official tour within India??

In above case whether Section 40A3 Disallowance of 100% of expenditure if payment is made by any mode other than account-payee cheque or draft

will be invoked????

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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21 March 2015 but these expenses will b paid to different persons and on different dates na..

Your employee wil pay these to different persons like for fooding, accodmation, and that too on different dates so it wil b allowed

you can give advance for expenses