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Clasification of expense

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S.Ramakrishnan

Manager -Finance & Accounts

62 Points Posted on 20 May 2020

Dear Experts

Good Morning.

I need a guidance.

We have spend an amount towards repairs in building to the tune of around Rs.30 lakhs and decided to capitalise.

Suppose if we book this as expenditure will it is allowable under income tax act.

If it has to be booked as asset what is the criteria

How this has to be treated in the books

what will be the treatment in the books of accounts

Thanks & Regards

S.Ramakrishnan

Replies (2)

Quick Summary

A user is seeking guidance on how to account for significant building repairs costing around £30 lakhs. They are unsure whether to treat this as a capital expenditure or a direct expense for income tax purposes. The discussion aims to clarify the criteria for capitalisation and the correct accounting treatment for these repairs on their own building, specifically noting that the roof sheets were replaced.