40A(3)

Dear Suneet,

Sec 40A(3) applies to expenditure made in cash. Depreciation is a non-cash expenditure hence it does not attract disallowance under section 40A(3).

Regards,

Fatema

Dear Fatema,

It is given in Taxmann's  Direct Taxes Ready Recnor in Para 49.3 in that 49.3-2 in Scope of Sec 40A(3)  that the  section is applicable even if depriciable asset is purchased.

Thanks

Moin

Dear Moin,

Reckoner is only v.k. singhania's interpretation of the income tax act.Please read the bare act.It does not say anythng about applicability of sec 40A(3) to depreciation.

Regards,

Fatema

thear will be no disallowance,  section 40A3  disallowed the payments in excess of 20000 which is related to the payments of either pgbp or ios