Cash Payment Allowability
TARUN MANGAL (student) (28 Points)
06 December 2019
Whether cash payment of more than Rs.10,000 made as "Employee Advance" will be allowable ?
6 Replies
Kapadia Pravin
(17264 Points)
Replied 06 December 2019
As it is not an expenditure falling under 40A(3), it's allowable. No issues. Don't worry
sabyasachi mukherjee
(27658 Points)
Replied 06 December 2019
Employee Advance is not applicable in Sec 40(A) 3.
It is a seperate ..issue altogether.
It is a seperate ..issue altogether.
Kapadia Pravin
(17264 Points)
Replied 06 December 2019
Tarun, payment of advance to employee in cash upto 20000/- is okay.
If more, than 269SS will apply to Employee and subsequent penalty.(100% )
So take care.
If more, than 269SS will apply to Employee and subsequent penalty.(100% )
So take care.
rama krishnan
(12244 Points)
Replied 07 December 2019
3] Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, or use of electronic clearing system through a bank account 39[or through such other electronic mode as may be prescribed], exceeds ten thousand rupees, no deduction shall be allowed in respect of such expenditure.
section 40A(3) speaks about any expenditure... so if the assessee treats the advance salary as expenditure and claimed it as deduction in p & l account, then 40A (3) is squarely applicable.
moreover, instead of claiming it as expenses if the assessee shows the same as asset in balance sheet and later adjust the same towards salary expenses section 40A (3A) will attract.
correct me if I'm wrong
section 40A(3) speaks about any expenditure... so if the assessee treats the advance salary as expenditure and claimed it as deduction in p & l account, then 40A (3) is squarely applicable.
moreover, instead of claiming it as expenses if the assessee shows the same as asset in balance sheet and later adjust the same towards salary expenses section 40A (3A) will attract.
correct me if I'm wrong
Tarun Patel
(2 Points)
Replied 07 December 2019
How much cash sell allow to one day to one person
any record required for cash sell
any record required for cash sell
Shivam RC
(Student)
(23683 Points)
Replied 08 December 2019
A person can accept CASH RECEIPT upto Rs. 1,99,999 in a single day from 1 person. If CASH RECEIPT of Rs. 2,00,000 or more is involved, then 100% Penalty imposed u/s 269ST of the Income Tax Act 1961.
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