cash purchase of computer 67000 .what is treatment in tax audit
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Cash purchase of computer for business used
Replies (10)
Above 20000 disallowed
expense is disallowed under income tax as its exceeding 10000 in cash
No I think it's 20000 now... Over and above 20000 payment to be made in cheque
From FY 2017-18, Cash limit reduced to 10,000/- for business expenses
Oh kk
If computer is capitalised then depreciation thereon will be disallowed
The cost of computer for income tax purpose will be reduced by the amount paid in cash if it exceeds 10000. Refer Sec 43(1)
same treatment
as per sec 40A(3) " Disallowance of cash expenditure" A payment or Aggregate payments for expenditure, otherwise than by way of A/c payee cheque or draft or A/c clearing system to A person in a single day, more than 10,000 such expenditure Shall not be allowed under income tax. Before budget of 2017-18 the limit was 20,000 and it was reduced to 10,000.
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