Hi All,
Could you please tell me whether the reimbursements to an employee by his employer in excess of Rs.20,000/- paid other than by an account payee cheque is covered under the purview of the aforesaid section?
Please reply at earliest & it would be really great if you could give any decided case law in support or any commentary for that matter.
Thanks & Regards
Karnik Gulati
Karnik
As per my opinion "REIMBURSEMENT" is also the expenses for the company and section 40A(3) is applicable for any payment "EXPENDITURE" and i think expenditure words itself says everythng.................
So payment for reimbursement should be done accordingly.............section40A(3)
hello,
employer can make payment to employee exceeding Rs20000/-other than A/c payee cheque/bankDD in following conditions-:
(i) On account of terminal benefit not exceeding Rs 50000/-
(ii)Where payment is made in to employee who is temporerily posted to any place other than normal [place of duty for more than 15 days & does not maintain his bank A/c in that place
(iii) Where pmt is made to employee (in capacity of agent) who is required to make pmt in cash for goods & services on behalf of employer.
(iv) where pmt is made on day on which banks were closed on A/c of holiday or strike
CAclubindia
