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Income tax query

Others 234 views 3 replies
i.t. assess construction of commerical building .exepenses paid for some amount paid cash mode and some other amount paid bank cheque mode .
Doubts:
1.cash payment exepenses penality applicable
2. cash payment exepenses depreciation claimed allowed.
3.cash payment value amount construction account included or excluced.
Replies (3)

cash payment > 10,000 is not allowed 

and such expenses shall not be allowed while computing profits for Business 

and If a capital goods is purchased via other than Account payee cheque , Account payee bank draft , via Electronic Clearing System through Banking Channel or other modes as may be prescribed then depreciation shall not be allowed . 

Yes... I agreed to Mr Naveen chand views...

@ Mr kollipara sundaraiah.,

1. Cash payments exceeding 10k then disallowed under income tax. Penalty not levied...

2. No... depreciation not allowed if CG purchasing through Cash.

3. Give more clarity...
3 rd point example: cash payment mode value (above ten thousand) Rs.200000/- and bank check mode payment value.Rs 5,00,000/- .my doubt asset value show in balance sheet Rs.5,00,000/- or 7,00,000/-


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