Mr. X the employer made a payment of ₹ 40,000 to his employee Mr. Y in cash, as Mr. Y was temporarily posted for 10 days to a place away from his normal place of duty. Mr. Y did not have any Bank A/c at the place of temporary posting. Assuming T.D.S. has been deducted the amount of salary will be,
A. Allowed as an expense
B. 30% disallowed
C. 100% disallowed
D. None of the above
Answer:C
Mr. X the employer made a payment of ₹ 40,000 to his employee Mr. Y in cash, as Mr. Y was temporarily posted for 10 days to a place away from his normal place of duty. Mr. Y did not have any Bank A/c at the place of temporary posting. Assuming T.D.S. has been deducted the amount of salary will be,
A. Allowed as an expense B. 30% disallowed C. 100% disallowed D. None of the above