Important
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 August 2013
If assessee buys a capital asset in cash ( cost is more than 20000), whether sec 40 A(3) comes into play, and also whether depreciation will b disallowed on that asset??
24 August 2013
sec.40A(3) will not apply for purchase of fixed asset
24 August 2013
1)Sec.40A(3) speaks about cash expence more than 20000 in a single day to single person,,however it is limited to those items which is debited to profit and loss account
2)more over you cannot disalow depreciation ,,because depreciation is allowance and it is not expenditure
.
.
depreciation is allowed on certain percentage on use of assets,,
So you cannot disallow depreciation also
However you can recommend to company to purchase fixed assets only by cheque to have better internal control sysytem
2)more over you cannot disalow depreciation ,,because depreciation is allowance and it is not expenditure
.
.
depreciation is allowed on certain percentage on use of assets,,
So you cannot disallow depreciation also
However you can recommend to company to purchase fixed assets only by cheque to have better internal control sysytem
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