car purchase in cash
This query is : Resolved
18 June 2011
what are the disadvantage of buying car in cash under income tax .
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.
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18 June 2011
ACCORDING TO MY KNOWLEDGE IF WE BUY CAR IN CASH THEN DEPRECIATION WILL BE NOT ALLOWED AS PER SEC 40A(3)..
WHAT IS YOUR OPINION.
WHAT IS YOUR OPINION.
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.
18 June 2011
DEPRECIATION IS ALLOWED AS PER SECTION 32 AND NOT AS PER SEC 40A(3).
IS THE SEC 40A(3)IS OVERRIDING SEC 32 ??
IS THE SEC 40A(3)IS OVERRIDING SEC 32 ??
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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19 June 2011
Thank you very much to make it clear Sir..
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