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section 40 A (iii)

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(Querist)
14 June 2011 Payment exceeding 20000 for assets purchase allow or not


if yes (beacause of this limit for business exp. then this assests depreciation can charge in P& L A/C
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CA Sreenivasa Rao Munaga

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CA Sreenivasa Rao Munaga (Expert)
16 June 2011 There are some exemptions in Sec 40A(3) where payments can exceed Rs.20000 in cash.

As per your query, If any one needs to purchase a capital asset then the same may be purchased with cash even it exceeds Rs.20000/-.

The depreciation can be charged in P&L A/c on the assets purchased through cash.

Please let us know if you have any questions on this.

Thanks,
CA M Sreenivasa Rao
R&S Associates
09866717710
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