Please Help: income tax
Posted Date : 16-Jan-2013 , 01:04:46 pm | Posted By: V.NAGARAJAN
Category :
Income Tax | Answers :
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Comments :
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whether depreciation charged to P& L account i.r.o an asset purchased on payment of cash exceeding Rs.20000/- would be disallowed in terms of the provisions of Sec 40(A)(3) of the IT Act, 1961 |
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Answers:
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 Answer by: Ravi Sanguri |
| Sec. 40(A)(3) is not applicable for purchase of capital asset.Therefore neither the Amount Paid for Purchase of asset nor the depreciation of Asset would be disallowed.
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| Comments |
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17-Jan-2013, 02:11:25 |
| Sec 40A(3)does not attract to depreciation as it is a non cash expenses and the cash payment to purchase the assets is capitalised.sec40A(3) is only applicable to revenue expenses paid in cash |
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