Income tax query

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)
Quick Summary
This discussion addresses income tax implications for commercial building construction, specifically concerning expenses paid in cash versus via bank cheque. Key questions revolve around penalties for cash payments exceeding £10,000, the eligibility of such expenses for depreciation claims, and how to correctly account for cash payments in the construction account and balance sheet. The consensus leans towards disallowing cash payments over £10,000 for profit computation and denying depreciation on capital goods bought with cash.

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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