Section 40A

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venkatachala

venkatachala (Querist)
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20 February 2008 Is Depreciation allowed for a fixed asset which is purchased by paying Rs.25000 in cash

venkatachala

venkatachala (Querist)
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20 February 2008 Is Depreciation allowed for Fixed asset which is purchased for Rs. 25000 by paying in cash

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
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20 February 2008 After the amenement in section 40(A)(3) IT IS NOT ALLOWABLE

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CA Hemant T Dewani

CA Hemant T Dewani (Expert)
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20 February 2008 if you are purchase machinery in cash it is allowed. only when your expences are in excess of rs.20000/-in cash that will not allowed u/s 40(A)(3)
expences which are debited to p&l a/c are under 40(A)(3)

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
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20 February 2008 THE ASSETS PURCHASED IN CASH ARE ALLOWED EVEN IF CASH PAYMENT EXCEEDS RS. 20000/- BECAUSE IT IS NOT A EXPENSE BUT CAPITAL EXPENDITURE BUT EXPENSES WHICH ARE DEBITED TO PROFIT AND LOSS ACCOUNT ARE COVERED UNDER 40(A)(3).BUT DEPRICIATION IS ALLOWED BECAUSE THE EXPENDITURE WAS MADE ON CAPITAL EXPENDITURE