Section 40A(3)

Querist : Anonymous (Querist) 31 May 2010 This query is : Resolved
Whether the purchase of capital assets by cash exceeding rs.20000 comes under the preview of section 40A(3)?

Please give me answer as soon as possible with reference.

Follow Query

Report Abuse

Jagmohan Rawat (Expert) 31 May 2010
No. Section 40A(3)is applicable to only revenue expenses debited to the P&L a/c. Hence purchase of capital assets in cash exceeding Rs.20000/- is not covered in the said section.

A V Vishal (Expert) 31 May 2010
Section 40 A(3) is not applicable for purchase of capital asset not meant for sale.
Refer Circular no 34 dated 05/03/1970.

Vineet (Expert) 01 June 2010
Please refer to an identical query raised in this section on 17th May, 2010 with link below.

http://www.lawyersclubindia.com/experts/CASH-PAYMENT-RECEIPT-ABOVE-20000-ON-PURCHASES-SALES/87316/

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

Ask Query
Unanswered Queries