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treatment of expenditure as per companies act

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(Querist)
01 April 2008 As per Income tax act any expenditure in excess of Rs.5000 should be capitalised. If it is spent on the assets it will be treated as fixed asset and should be considered for calculating depreciation as per sec.32. but what is treshhold limit under the companies act 1956.
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Sanjeev Kumar Sharma

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Sanjeev Kumar Sharma (Expert)
01 April 2008 there is no treshhold limit under companies act and u r confusing with expenditure more than 5000 will be capitalised, for depreciation purpose in income tax act, u/s 32 if addition in assets value is upto rs. 5000 then 100% dep. u can charges.
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CA Praveen Chopra

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CA Praveen Chopra (Expert)
01 April 2008 Even there is no threshold limit under the income tax act for capitalising any amount.
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C.rajesh

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C.rajesh (Querist)
03 April 2008 thanks to sanjeev and prveen
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