Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Honda activa

662 views

Save Share

ABHI KUMAR

744 Points Posted on 22 January 2021

activa purchase in cash 67 thousand in single payment but use for business can we claim depreciation and answer is no den we are liable to show in fixed assets or capital

Replies (4)

Quick Summary

Purchasing a Honda Activa outright with cash may present tax challenges. While depreciation can typically be claimed on business assets, payments exceeding £10,000 in cash can be disallowed for tax purposes. It's advisable to use alternative payment methods like bank transfers or cheques to ensure compliance and allow for depreciation claims.

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 22 January 2021

But the payment can be disallowed as it exceeds 10000 rupees in cash. Depreciation can be claimed

Kapadia Pravin

17269 Points Posted on 22 January 2021

Since payment is disallowed, it is not worth purchasing in cash. Better to pay by DD or Pay Order or net banking.

Krishna Chaudhary

Accountant

4533 Points Posted on 23 January 2021

Kindly show your payments in multiple days to claim depreciation as per the provisions of Income tax act.
but since you have purchased a Honda from showroom it is not possible to show payment in multiple days.