Why capital expenditure is not allowed as deduction?
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
29 September 2013
Hi Everyone...Could you please answer my query with an example.
Why Capital Expenditure is not allowed as deduction under PGBP?(Sec 30 & 31).
Why Capital Expenditure is not allowed as deduction under PGBP?(Sec 30 & 31).
29 September 2013
capital expenditure provides benefit for more than one year. Accordingly, instead of providing full deduction in the year of expenditure, the allowance is made in form of depreciation over useful life of capital expenditure.
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29 September 2013
Agree with expert
29 September 2013
One of the principles underlying the tax rules for deductions is that your income for the year should only be offset by those expenses that contributed to earning that income.
Expenses to acquire or improve a business asset that will last longer than a year are not deductible as business expenses.
Expenses to acquire or improve a business asset that will last longer than a year are not deductible as business expenses.
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