A tax payer has purchsed a asset for 40000 and paid the bill with cash on a single day. whether depeciation on it will be allowed since the asset is purchased for more than 20000 in cash.
Menu
What if asset cost is more than 20000 and paid in cash
Replies (7)
yes, depr. will b allowed as capital asset is not an expense thus not covered u/s 40A(3)
yes, dep allowed
refer sec 40--A-3
No disallowance u/s 40A(3) is attracted if a capital asset is purchased by cash. Depreciation will be allowed.
Only expenses are hit by this disallowance.
yes you can
Yes, Depreciation will be allowed
Yes you can claim depreciation. Expenses incurred on cash are disallowed
Recent Topics :
- INCOME TAX SECTION 92E
- Queries on Tax Invoice and GST
- Income Tax Auditor Tenure for Small Companies
- Sec 8 company sec 12ab reg
- AIS Password: How to Open Your AIS PDF?
- Interview Questions
- ITR Filing Last Date 2026
- Tds - filing Conso File for tax year 2026-27
- ITR-3 Filing For AY 2026-27 - Tips
- Capital Gain on sale of Depreciated Factory Gala
Related Topics :
CAclubindia
