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Cash purchase of computer for business used

mayur tarhekar (1 Points)

03 September 2017

cash purchase of computer 67000 .what is treatment in tax audit

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10 Replies

Ashwin Kumar (1229 Points)
Replied 03 September 2017

Above 20000 disallowed

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 03 September 2017

expense is disallowed under income tax as its exceeding 10000 in cash

1 Like

Ashwin Kumar (1229 Points)
Replied 03 September 2017

No I think it's 20000 now... Over and above 20000 payment to be made in cheque

NITIN SABOO (344 Points)
Replied 03 September 2017

From FY 2017-18, Cash limit reduced to 10,000/- for business expenses

3 Like

Ashwin Kumar (1229 Points)
Replied 03 September 2017

Oh kk

1 Like

Poltu Ghosh (Job) (1865 Points)
Replied 03 September 2017

If computer is capitalised then depreciation thereon will be disallowed

2 Like

sameer (student) (48 Points)
Replied 03 September 2017

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)

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(Guest)

what if buyer pays in 7 equal installments in cash??

Poltu Ghosh (Job) (1865 Points)
Replied 04 September 2017

same treatment

Ram swaroop garg (student) (32 Points)
Replied 04 September 2017

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.

2 Like