Sec40a(3) cash payments exceeds 20000, Income Tax

[chandrashekhar bathini]

Dear sir,

salary payment to employee in cash(working at site) 50000 in a day, is it allowable or not allowable u/s 40a(3)

2) Amount 25000 paid to employee and the employee paying (wages to one person 10000,another person 15000)

in this way shall i pay advance to employee more than 20000

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

Any payment exceeding ₹ 20000/- paid by cash is not allowed under the Income tax Act provisions.

[chandrashekhar bathini]

Thank you sir.