Sec. 40a(3)
This query is : Resolved
30 September 2011
Dear Sir
I want to purchase a flat in cash rs. 10 laks
tell me effect of income tax
Thanks
Mahesh
I want to purchase a flat in cash rs. 10 laks
tell me effect of income tax
Thanks
Mahesh
CA Parth Shah
(Expert)
30 September 2011
You will not face any problem until you are not in radar of department but once you are caught, you will be asked the source of the same cash.:)
Preety Parik
(Expert)
30 September 2011
Flat is a capital expenditure. 40A(3) is applicable to revenue expenditure.
Since the purchase is in cash there must be evidence for genuineness of expenditure and identity of seller as well as you must have sufficient source (i.e cash in hand) for payment of purchase cost.
Since the purchase is in cash there must be evidence for genuineness of expenditure and identity of seller as well as you must have sufficient source (i.e cash in hand) for payment of purchase cost.
CA Ashwani Agarwal
(Expert)
30 September 2011
If you prepare your personal accounts and you have enough cash in hand in your books then there is not a problem at all.
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