Sec 40A(3)
This query is : Resolved
11 March 2009
hi every one
i hav a query
if an asset is purchased for cash exceeding Rs 20000/- , then sec 40A(3)gets attracted . then whats the penal provision for such as , however , asset purchased will not be allowed as deduction as it will get captalised
i hav a query
if an asset is purchased for cash exceeding Rs 20000/- , then sec 40A(3)gets attracted . then whats the penal provision for such as , however , asset purchased will not be allowed as deduction as it will get captalised
11 March 2009
such payment will be capitalized and its not deductible. and section 40A(3) is not applicable.
11 March 2009
Section 40A(3) is not applicable on Capital Assets purchased. Although one famous writer of Income tax books is of the view that Depreciation on assets may be disallowed which were purchaesed in Cash, but most of the writers do not have this view. Keeping the main provisions of section 40A(3), it can be said that no disallownace can be made on assets purchased in cash.
12 March 2009
The provisions of section 40A(3) would apply in computing the income under the head profits and gains of business or profession and income from other sources under section 58(2) only. Hence purchase of assets in cash for more than Rs 20000/- will not qualify for disallowance u/s 40A(3). Pl refer http://law.incometaxindia.gov.in/TaxmannDit/DispCitation/ShowCit.aspx?fn=http://law.incometaxindia.gov.in/directtaxlaws/cbdt/dtccontents/PARA0379.htm
14 March 2009
is it possible that depreciation getting disallowed
14 March 2009
Dear Anand, Most of the experts are not of the view of depreciation disallowance, but if any Assessing officer comes with such a view, then it can be matter of appeals.
14 March 2009
thanks for that tarun !!!
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Inventory of finished goods
- Disallowance of Section 43B(h) to sez units
- RCM INVOICING FROM NOV-2024
- Confusion around Form 26QB fields
- GST Regis.
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Sale of property furniture sale
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Tds on building rent monthly
- As per schedule III of balance sheet how to pass journal entry
- Is correct way to find out capital of individual on 31st March
- Individual capital equal to which assets of balance sheet
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
