Treating purchase of asset as an expense
Mohan Kale (342 Points)
16 November 2021Mohan Kale (342 Points)
16 November 2021
JGM
(Knowledge Sharer)
(443 Points)
Replied 16 November 2021
Section 37(1) of the Income-tax Act does not allow dleduction of capital expense. Since fixed asset falls under capital expense, the same is not a deductible item. However, in terms of section 32, depreciation on such asset may be claimed. You need to check whether the asset is a depreciable asset or not (for eg., depreciation is not available on goodwill, freehold land etc.)
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 16 November 2021
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