car purchase in cash
This query is : Resolved
rushabh shah
(Querist)
18 June 2011
what are the disadvantage of buying car in cash under income tax .
CA Rajendra Purohit
(Expert)
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.
Message likes :
1 times
rushabh shah
(Querist)
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.
CA Rajendra Purohit
(Expert)
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.
rushabh shah
(Querist)
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.
Message likes :
2 times
CA Rajendra Purohit
(Expert)
19 June 2011
Thank you very much to make it clear Sir..
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Capital Gail Exemption Certificate
- Taxation of crypto futures in India Fy 2026- 2027
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Issuing of delivery challan by seller of goods
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
