About sec 40a(3)

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Querist : Anonymous

Querist : Anonymous (Querist)

06 June 2014 if any payment made above 20000 for capital expenditure.Is this allowable or not u/s 40A(3)

Nikhil Kaushik

Nikhil Kaushik (Expert)
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06 June 2014 yes it is allowed. 40a(3) doesnt apply to capex.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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06 June 2014 it is related to expenditure and that is claimed in profit and loss a/c i guess except sec 35 there is no sec which allows capital expenditure....

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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07 June 2014 Section40A (3) is applicable only to revenue expenditure and not capital expenditure. So any capital expenditure in excess of Rs.20000 has no impact on income tax.