Please Help: Cash Payment
Posted Date : 03-Mar-2012 , 03:25:28 pm | Posted By: Kuldeep Loura
Category :
Income Tax | Answers :
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Comments :
5| Hits: 1648
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Cash payment more than Rs. 20000 for Fixed Assets like machinery can be made |
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Answers:
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 Answer by: Lavina Bajaj |
| hello
no disallowance on such payments coz section 40A(3) is not applicable for purchase of fixed assets..
hope it would resolve your query..
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| Answer by: Ketan Samdani |
| In this case the depreciation will be disallowed.
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| Answer by: Rambabu Senkarasetti |
| Purchase of fixed assets is not covered
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| Comments |
| Posted By : Kuldeep Loura |
28-Mar-2012, 11:46:00 |
| Thanks of All for my Problem Solution
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| Posted By : RAVINDRA JHA |
07-Mar-2012, 02:19:33 |
| hello sir, if u Buying a Assets having a Capital nature(fixed assets) then u can pay more than 20000 in cash becz cash payment limit u/s 40A(3) is applicable only on revenue nature item....
and deprec. is also allowed on the fixed assets as per income tax norms but im little confused about ans of deepa jain why she said this dep. is not allowed.
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| Posted By : RAVINDRA JHA |
07-Mar-2012, 02:15:26 |
| hello sir, if u Buying a Assets having a Capital nature(fixed assets) then u can pay more than 20000 in cash becz cash payment limit u/s 40A(3) is applicable only on revenue nature item.....
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| Posted By : Deepa Jain |
03-Mar-2012, 05:47:10 |
| hello lavina, Full Payment is not disallowed at the year when the fixed assets purchased but the depreciation u/s 32 is not allowed under the forthcoming year. |
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| Posted By : Deepa Jain |
03-Mar-2012, 05:43:48 |
| Hello Kuldeep Loura:
Section 40A(3)is attracted in respect of expenditure made which is deductible u/s 30 to 37. So if you acquire a fixed assets by making payment More than Rs. 20000/- in cash, so the depreciation which is otherwise allowable u/s 32, should be disallowed as per this section. |
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