section 40 A (iii)

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Abhishek (Querist)
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14 June 2011 Payment exceeding 20000 for assets purchase allow or not

if yes (beacause of this limit for business exp. then this assests depreciation can charge in P& L A/C

CA Sreenivasa Rao Munaga

CA Sreenivasa Rao Munaga (Expert)
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16 June 2011 There are some exemptions in Sec 40A(3) where payments can exceed Rs.20000 in cash.

As per your query, If any one needs to purchase a capital asset then the same may be purchased with cash even it exceeds Rs.20000/-.

The depreciation can be charged in P&L A/c on the assets purchased through cash.

Please let us know if you have any questions on this.

Thanks,
CA M Sreenivasa Rao
R&S Associates
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