Can Cash payments exceeding Rs.20,000 be made to employees as advance??
Can Cash payments exceeding Rs.20,000 be made to employees as advance??
40A(3) of Income Tax Act says any payment made in excess of 20000/= to any person .so you cannot make advance to an employee for Rs20000/= in cash on a single day
I think payment as advance can be given in cash for more than 20000 as you are not claiming it as your expenditure
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