I.t. query

This query is : Resolved

Kollipara Sundaraiah (Querist)
Follow

08 April 2020 I.t .assess construction for commerical building.construction expenses some expenses cash mode and some expenses bank account payee mode paid.
1.cash payment construction expenses above 10 thousand depreciation allowed or not.
2.ex: some construction expenses Rs.2,00,000/- cash mode paid
Some construction expenses Rs.5,00,000/- bank account payee mode.
My doubt construction expenses value Rs.5,00,000/- or 7,00,000/- show in balance sheet.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

10 April 2020 There is one more term known as Work -in-Progress. You can show all the revenue expenses incurred on construction irrespective of the fact whether incurred in cash or by cheque. As far as the question of Depreciation on fixed assets purchased in Cash (More than 10000/- cash paid) -it has also to be claimed in the Books of Account but in Computation of Total Income it has to be added back to the income.
In small cases it is advisable to show the income U/s 44AD.