14 September 2013
If fixed assets purchase by paying cash above Rs. 20000 then whether depreciation on it will be deductible and if yes then please can you give me information of that circular if any.... thank you
14 September 2013
No, it is not applicable on Purchase of fixed assets or any other depreciable assets.
Section 40A(3) : expenditure ( other than capital assets) incurred in excess of 20000 not by an A/c payee cheque or bank draft in respect of which a payment/ aggregate of payment made to a person in a day shall not be allowed to be reduced as expense while calculating PGBP income.
No Dis-allowance can be made in respect of Depreciation...