Purchase cost of house

Dear Ajay,

Yes it will be capitalized......

Example  - First Insurance in case of New Car is capitalized..

First Recharge Coupon in case of mobile is capitalized

Originally posted by : Amir
	Dear Ajay, Yes it will be capitalized...... Example  - First Insurance in case of New Car is capitalized.. First Recharge Coupon in case of mobile is capitalized

Mr. Amir Can you explain me under which section it has been said that first recharge coupon in case of  mobile have to be capitalized???

Dear Saranraj,

AS-6 defines the Historical Cost i:e the cost on whiich Depreciation is to be charged

Historical cost of a depreciable asset represents its money outlay or its

equivalent in connection with its acquisition, installation and commissioning

as well as for additions to or improvement thereof.

Now, Income Tax uses the term "actual cost", unfortunately the definition of the term itself uses the expression "actual cost",  therefore it has to be understood in paralance..........

AS 6 (DEPRECIATION) ANY IMOVABLE PROPERTY WHICH INCURRED EXP FOR INSTALLATION OR RENOVATION IS ADDED TO COST OF PURCHASE.

yes

Yes your cost incurred twards painting should be capitalized

ya u can only capitalised if u have evidence like bill of paints in u name