payment >20000/-
This query is : Resolved
22 July 2010
SINCE CASH PAYMENT EXCEEDING 20,000/- IS DISALLOWED UNDER INCOME TAX.
PLEASE TELL ME IF AN ASSET IS PURCHASE , FOR EXAMPLE A COMPUTER , FURNITURE IS PURCHASED FOR 35,000/-, 29,000/- RESPECTIVELY .
NOW WHETHER ABOVE TWO PAYMENT > 20,000/- CAN BE ALLOWED UNDER INCOME TAX SINCE THE WORD USED UNDER RELEVANT SECTION IS "EXPENDITURE".
PLEASE TELL ME IF AN ASSET IS PURCHASE , FOR EXAMPLE A COMPUTER , FURNITURE IS PURCHASED FOR 35,000/-, 29,000/- RESPECTIVELY .
NOW WHETHER ABOVE TWO PAYMENT > 20,000/- CAN BE ALLOWED UNDER INCOME TAX SINCE THE WORD USED UNDER RELEVANT SECTION IS "EXPENDITURE".
22 July 2010
The exception to Sec. 40A(3) also states that the section does not apply to the payments made to acquire and fixed asset or any capital expenditure.
This section does not have any effect on Capital Expenditure.
Logic:-
Section 40(a) (3) restricts claiming deduction for expenditure incurred which is shown in P&L Account. as the purchase of capital goods will not appear in P&L Account then there is no question of claiming Deduction.
This section does not have any effect on Capital Expenditure.
Logic:-
Section 40(a) (3) restricts claiming deduction for expenditure incurred which is shown in P&L Account. as the purchase of capital goods will not appear in P&L Account then there is no question of claiming Deduction.
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
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Capital gain from sale of house property
- Transporter Declaration form
- Annual return in Gst
- Before GSTAT- APL-02 Vs APL-04
- FORM 26A APPLICABILITY
- Value of property in capital gain
- Regarding TDS Applicability For Director Remuneration
- Opting our of sec 44AD
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
