Sec. 40a(3)

This query is : Resolved 

30 September 2011 Dear Sir


I want to purchase a flat in cash rs. 10 laks

tell me effect of income tax

Thanks
Mahesh

30 September 2011 You will not face any problem until you are not in radar of department but once you are caught, you will be asked the source of the same cash.:)

30 September 2011 Flat is a capital expenditure. 40A(3) is applicable to revenue expenditure.

Since the purchase is in cash there must be evidence for genuineness of expenditure and identity of seller as well as you must have sufficient source (i.e cash in hand) for payment of purchase cost.


30 September 2011 If you prepare your personal accounts and you have enough cash in hand in your books then there is not a problem at all.



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries