Fixed Asset

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CA Jithesh C (Querist)
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24 March 2009 Dear all,

Purchase of painting (pictures) will come under which category of fixed asset according to Income Tax Act as well as Companies Act?

Thanks.

Rajesh Kumar

Rajesh Kumar (Expert)
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24 March 2009 It depends upon the purpose of purchase.
If it is simply for decorating interiors etc., it is revenue expenditure.
If it is for sale at a higher price in some future time, it is a capital asset.
When it is purchased by a painting dealer, it is inventory purchase.