ExistingÂ (Financial Year 2016 - 2017 or AY 2017-18)
- Cash Payments > 20000 are disallowed under Section 40(a)
- This applies to only OPEX (Operating Expenses)
- Not applicable to CAPEX (Purchase of Fixed Assets)
New(Financial Year 2017 - 2018 or AY 2018-19)
- Cash Payments>10000 are disallowed under Section 40(a)
- In case of fixed assets(CAPEX) purchased in cash more than 10000, depreciation will not be charge on it.