18 June 2011
If you are buying a car on individual name then as such there is no disadvantage provided your cash balance should be sound enough to cover up the transaction.
18 June 2011
If the car is purchased for the business purpose or in the name of company then depreciation will not be allowed as any payment in cash excess of rs. 20000 to any party will be disallowed.
19 June 2011
Purchase of Fixed asset is capital expenditure. This is a balance sheet item and not P/l item. So you can purchase fixed assets by Cash payment exceeding Rs. 20000/- no disallowance u/s 40A(3) of the IT Act, 1961.
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