Existing (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.
  1. Tax Practical
  2. Budget Amendments - Changes in 2020

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.