Disallowance of devaluation u/s 32 and capital investment u/s 35 AD on money payment as per Finance Expense2017 Hello there Pals in union budget 2017 govt take numerous choices for promoting digital payments one of them is if any one pay for capital investment u/s 35 AD & devaluation u/s 32 then that amount is disallowed under Service Head earnings. Check more information for “Disallowance of depreciation u/s 32 & capital expense u/s 35 AD on money payment” from listed below …
Disallowance of devaluation u/s 32
Under the existing provisions of the Act, income expenditure incurred in money exceeding specific financial limit is not permitted based on sub-section (3) of section 40 A of the Act except in specified situations as referred to in Guideline 6DD of the Income-tax Rules,1962 Nevertheless, there is no provision to prohibit the capital investment sustained in cash. Even more, section 35 ADVERTISEMENT of the Act, inter-alia attends to investment linked deduction on the quantity capital investment sustained, entirely or specifically for the purposes of company, throughout the previous year for a defined company except capital expenditure incurred for acquisition of any land or goodwill or monetary instrument.
In order to prevent money deals even for capital investment, it is proposed to change the provisions of section 43 of the Act to supply that where an assessee sustains any expense for acquisition of any possession in respect which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque made use of a bank or account payee bank draft or usage of electronic clearing system through a bank account, exceeds ten thousand rupees, such expense shall be disregarded for the purposes of determination of real expense of such asset.
It is additional proposed to amend section 35 ADVERTISEMENT of the Act to provide that any expenditure in regard of which payment or aggregate of payments made to an individual in a day, otherwise than by an account payee cheque made use of a bank or an account payee bank draft or use of electronic cleaning system through a checking account, exceeds ten thousand rupees, no deduction shall be allowed in regard of such expenditure.
These amendments will work from 1st April, 2018 and will, appropriately, use in relation to the evaluation year 2018-19 and subsequent year
[Clauses 13 & 16]
Please Download Financing Costs 2017 From Below link …
Finance Costs 2017, Direct tax Changes in Budget plan 2017– Download
Recommended short articles
- TDS Rates U/s 194 J Decreased from 10% to 2% by Finance Expense 2017
- Deemed earnings u/s 44 ADVERTISEMENT decreased from 8% to 6% for digital deal
- Salient Features of Pradhan Mantri Garib Kalyan Deposit Plan, 2016
- PMGKY Plan, Pradhan Mantri Garib Kalyan Deposit Plan, 2016
- CBDT Clarification on Fake News Related to Exemption to Political Celebrations
- Earnings Tax Due Dates
- Tax treatment of dividend gotten from a foreign company
- How to send Action for Exceptional Tax Demand
- Additional Depreciation– Who can Avail?, accessibility, Rate of Include Dep
- Tax Audit Limitation U/s 44 AB Increased From 1 Crore to 2 Crore AY 2017-18
- Threshold limitation Increased for maintenance of books of accounts
1 photos of the "Disallowance of depreciation u/s 32 & capital expenditure u/s 35AD on cash payment"
