Please Help: Income Tax Act
Posted Date : 10-Jan-2015 , 03:07:18 pm | Posted By: Geetika Mittal
Category :
Income Tax | Answers :
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Comments :
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My auditee has granted an advance of Rs. 30000 as Tour advance to one of the employee. Whether this would fall under the purview of section 40(a)(3) of income tax act. |
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| Posted By : Geetika Mittal |
12-Feb-2015, 07:17:31 |
| Thanks everyone for your clear and valued comments.. |
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| Posted By : Neeraj Trivedi |
14-Jan-2015, 08:16:07 |
| the last line i want to amend..
and by doing this sec-40a3 would not be affected as the advance not yet charged to pl.. |
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| Posted By : Neeraj Trivedi |
14-Jan-2015, 08:10:31 |
| Take Tour advance as Short term advances and when actual expense is known put the expenses entry in pl and cancel the advance with it...and by doing this sec-40a3 would not be affected as the expenditure is not charge to pl |
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| Posted By : Ashish Shah |
14-Jan-2015, 06:23:56 |
| it will result in book adjustment and finally expense will be debited which is exception as mentioned in rule 6DD(d).
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| Posted By : Ashish Jain |
14-Jan-2015, 03:52:53 |
| No, it is not in nature of expense |
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| Posted By : M R Gopal |
14-Jan-2015, 11:52:00 |
| since this is only an advance and has not crystalised into expenditure provision of sec 40(a)(3) may not be attracted |
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| Posted By : Y.K.Bhushan |
14-Jan-2015, 10:12:14 |
| No in fact it is not a expense , it is an advance only |
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| Posted By : Piyush Laddha |
10-Jan-2015, 06:58:20 |
| No, It will not come under the perview of Section 40 A(3) because the company has not paid any payment, it is advance only and voucher of employee will be also in part only. |
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