Please Help: Cash Payment

Posted Date : 03-Mar-2012 , 03:25:28 pm | Posted By Kuldeep Loura

Cash payment more than Rs. 20000 for Fixed Assets like machinery can be made

Category : Income Tax | Answers : 3 | Comments : 5 | Hits : 1575

Answers

Answer By: lavina bajaj

hello

no disallowance on such payments coz section 40A(3) is not applicable for purchase of fixed assets..

hope it would resolve your query..

Answer By: Ketan Samdani

In this case the depreciation will be disallowed.

Answer By: Rambabu Senkarasetti

Purchase of fixed assets is not covered

Comments

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Deepa Jain

03-Mar-2012 , 05:43:48 pm

Hello Kuldeep Loura: Section 40A(3)is attracted in respect of expenditure made which is deductible u/s 30 to 37. So if you acquire a fixed assets by making payment More than Rs. 20000/- in cash, so the depreciation which is otherwise allowable u/s 32, should be disallowed as per this section.

Deepa Jain

03-Mar-2012 , 05:47:10 pm

hello lavina, Full Payment is not disallowed at the year when the fixed assets purchased but the depreciation u/s 32 is not allowed under the forthcoming year.

RAVINDRA JHA

07-Mar-2012 , 02:15:26 pm

hello sir, if u Buying a Assets having a Capital nature(fixed assets) then u can pay more than 20000 in cash becz cash payment limit u/s 40A(3) is applicable only on revenue nature item.....

RAVINDRA JHA

07-Mar-2012 , 02:19:33 pm

hello sir, if u Buying a Assets having a Capital nature(fixed assets) then u can pay more than 20000 in cash becz cash payment limit u/s 40A(3) is applicable only on revenue nature item.... and deprec. is also allowed on the fixed assets as per income tax norms but im little confused about ans of deepa jain why she said this dep. is not allowed.