ABOVE 20000

This query is : Resolved

vishal (Querist)
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27 September 2008 I have a qurery. Under Income tax any payment exceeding Rs. 20000 in cash is disallowed. Does the same applies to Capital Expenditure also. Like if a person purchases a laptop of Rs. 40000 in cash making one time payment then depreciation on it will be allowed or disallowed.

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Jitender

Jitender (Expert)
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27 September 2008 sec 40A(3) does noy apply to capital expenditure.

CA V. Mohanakrishnan

CA V. Mohanakrishnan (Expert)
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30 September 2008 disallowance happens for items being charged to profit and loss account.

the purchase of capital item is not fully charged to the profit and loss account in the current case.