Rent deposit (refundable) payment

This query is : Resolved

venkata ravikumar padmanabhuni (Querist)
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19 August 2011 Good evening,

I have a doubt about the payment of rent deposit (refundable) in the form of cash by the firm/company. The payment was made rs.52000/- in previous F.year. Is it allowed or not allowed as per I.T?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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19 August 2011 When you are not claiming any expenses in the first place then how it would be allowable.

taxindiaconnect

taxindiaconnect (Expert)
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19 August 2011 Under rule 6DD the amount of payment made in exceess of Rs 20000 in cash in one day is not allowed as deduction for tax purposes. Since this is not an expenditure hitting the P & L account, so no reason for any disallowanc.

CA Hardik Bunha

CA Hardik Bunha (Expert)
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19 August 2011 AS PER YOUR CASE no matter for ALLOWABLE OR NOT ALLOWABLE.
THE ANSWER GIVEN FOR YOUR QUERY FOR TWO EXPERTS..........WHY THEY DIDN'T UNDERSTAND????????

sir actually u made payment is in the nature of capital exp. you should show rs. 52000 in balance sheet for deposit.

when after few years u left rented premises that time owner of the property will make payment for that deposit.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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20 August 2011 Dear Hardik
When i mean to say that you are not claiming and expenses it means you have shown in the balance sheet. I think u did not understand that.

CA Hardik Bunha

CA Hardik Bunha (Expert)
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20 August 2011 Dear Aditya Maheshwari
i appreciate your reply but NOT CLAIMING AND EXPENSES is not right way to give treatment. it is a deposit. NO MATTER FOR EXP. I HOPE U UNDERSTAND.

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