Payment in Cash in Excess of Rs. 20,000/-

abhishek CA FINAL [ Scorecard : 188] Posted about 5 hours ago if a payment for purchase of fixed asset is made in cash and the amount of payment exceeds Rs 20,000/- what would be the consequences? eg computer purchased for Rs 49000/- by paying cash.   Thankx in advance :)   Share on linkedin Akash CA Final Article Assistant [ Scorecard : 1665] Posted about 6 hours ago It will be disallowed u/s 40 a(3) Ramsai Neelam CA FINAL [ Scorecard : 422] Posted about 6 hours ago  Sec 40A(3) will applicable to the payments in revenue nature. Payments made for purchase of F.A does n not attracts Sec 40A(3) disallowance.  One can claim Depreciation as will on purchased assets U/s 32 of IT Total thanks : 1 times abhishek CA FINAL [ Scorecard : 188] Posted about 6 hours ago Thank you Ramsai :) Can the depreciation be disaalowed ??   MANISH student [ Scorecard : 163] Posted about 6 hours ago Originally posted by : abhishek Thank you Ramsai :) Can the depreciation be disaalowed ??     Depreciation can be claimed.   Only revenue nature expenses are disallowed as mention by Ramsai   Total thanks : 1 times abhishek CA FINAL [ Scorecard : 188] Posted about 6 hours ago hi Manish  thanks for your reply i have a doubt, is depreciation not a revenue expenditure? parasmani pal study [ Scorecard : 26] Posted about 7 hours ago It is. But computer is not revenue nature. When it is allowed to make a FA in cash above 20k. Then its depreciation is also allowed to dr in p&l. Total thanks : 1 times CA Mitesh N Kothari [ Scorecard : 34] Posted about 7 hours ago Ramsai Neelam is Right since it is capital expenditure and not revenue expenditure it wont be disallowed.   Total thanks : 1 times Ramsai Neelam CA FINAL [ Scorecard : 422] Posted about 8 hours ago Originally posted by : abhishek Thank you Ramsai :) Can the depreciation be disaalowed ??   Depreciation can be allowed as usually. Depreciation is a revenue nature, but Computers on which you expended can't be endured during the year, i.e the benefit can taken over several years. Govind Singh Accountant [ Scorecard : 21] Posted about 10 hours ago If there is so much dispute its better not to purchase in cash 

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