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Answers - ACCA Global

Since the monthly salary of each employee is above the maximum amount which can be paid in cash [i.e. Rs. 15,000 per month], the amount is disallowed in full at Rs. 480,000 (20,000 x 6 x 4). [s.21(m)] Note 6 Wages of Rs. 600,000 paid to a personal servant of a director of FIL are not for the purposes of business carried on by FIL.

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