Income Tax Query

No there's no such limit. But you should invest money for which source is  legally definable, otherwise scrutiny may occur.

as per IT act, ther is no such type of requirment

 Hi Naina

 Income tax Act does not specify the limit of amount of expenditure but it only specify the procedure that "How to tax the income"

So income tax act does not specify the limit of expenditure on construction of Land & building.

Its only internal mgmt. policy & depends on budgeted Capex expenditure.

I heard my CA asking to some client to lower the land and building value, which is being constructed. Otherwise his case may be taken up by the IT Deptt.

Dear Uday

I am alos not talking about the language written in act. I m just talking aboout the interpretation of Act.

And naina as u said that "I heard my CA asking to some client to lower the land and building value, which is being constructed. Otherwise his case may be taken up by the IT Deptt."

I think it i the matter of financing of loan for construction might be possible . ????

If the building is valued @ actual expenditure incurred and the expenses are incurred with funds from appropriate sources ( not black money) there should be no problem in showing the building @ actual value even if it is very high...