InvestorQ : I make payments in my name on behalf of my company, what will happen to those expenses under the new form 26AS?
Swati Naik made post

I make payments in my name on behalf of my company, what will happen to those expenses under the new form 26AS?

Answer
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Ria Roy answered.
1 month ago


Under new Form 26AS, the government is planning to cover certain expenses beyond a specified limit and all those expenses made by a person shall be included in his Statement of Financial Transactions. So, making payment on behalf of someone could get a little difficult for you.

You can be someone who travels frequently for work or meet and entertain clients for meals etc., make payments from your card the company reimburses you for the same. In that case, the IT department will capture details of your expenses and you shall be mapped for the same, all those expenses shall be considered as yours.

Also, do not deposit money on behalf of someone because if it exceeds Rs. 25 lakhs, the details of the same shall be shared with the Income-tax department. So, as far as practicable, do not make payments on behalf of your company especially if it exceeds specified limits.