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.
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