Cash payment for purchase of car

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 April 2015 Dear all ,

Can I purchase a Motor car by paying cash for an amount Rs. 2,45,000/- ,
Whether it will evasion of section 269ss or not?
If yes , then under in which income tax section I can pay cash ,

Kindly give me a full clarification on this matter.

Thanks in advance.
Subhash Jain

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 April 2015 Yes you can pay cash for buying a car 269ss will not be attracted.

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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29 April 2015 yes neither 40(a)3 nor 269 ss wil apply

Querist : Anonymous

Querist : Anonymous (Querist)

29 April 2015 Thanks a lot both of you ,

Further please clear me that in which section or rules or case law it is allowable and why section 40(a)3 and 269ss will not attract.

Thanks
Subahsh jain

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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29 April 2015 40(a)3 applies on revenue expenses

269 SS applies for loans and deposits

Querist : Anonymous

Querist : Anonymous (Querist)

29 April 2015 Thanks Ankit ji ,

That is true , but in the both sections there is no any clarification that for the capital expenditure and for the purchase of fixed assets both sections will not attract.

waiting for your reply

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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29 April 2015 the prime word of sec 40 (a)3 is .. "Any Expenditure incurred" and as far as i know capital asset purchase is not an expenses dear

Querist : Anonymous

Querist : Anonymous (Querist)

29 April 2015 That is also true , that capital asset is not a expenditure and also not a part of profit and loss account , but I want to know only exclusions for that.
Because of that in financial bill , 2015 , government bared the limit for the purchasing of immovable property.( not will allow to pay in cash exceeding the limit of 20,000/- )
I hope that you are getting my point.

Thanks