ONE QUESTION IN RESPECT OF DIRECT TAX SECTION 40A(3).

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CA Umashankar Vaishnav (Querist)
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06 August 2009 RESPECTED SIR
MAY I HAVE ONE QUESTION IN RESPECT OF DIRECT TAX SECTION 40A(3).
SUPPOSE IN A PREVIOUS YEAR I HAVE PURCHASE A CAR FOR RS 500000 /- IN CASH.

THAN FOR THAT PREVIOUS YEAR CAN I COULD CLAIM DEPRECIATION @15 % AS PER INCOME TAX DEP. TABLE

OR

Its Dep WILL BE DISALLOWED UNDER SECTION 40A(3)

IN V.K. SINGHANIA BOOK DIRECT TAX NEW EDITION APPLICABLE FOR A.Y.2009-10 IT IS CLEARLY MENTION BY GIVING THE FOLLOWING EXAMPLE

PLZ REPLY ME SIR

UMASHANKAR
GWALIOR
CA FINAL MAY 2010

Vivek Gupta

Vivek Gupta (Expert)
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07 August 2009 hi,

i have not come across the book, but as understood from above...

Yes, we can claim depr on asset purchased in cash of more than 20,000/-. as per the defination of 40a(3, the section applies for expenses claimed as expenses, and posted on the expenditure side of the p/l. as here the asset is purchased, so we are not treating it as an expense. , thereafter we can clain depr...