Is depreciation allowable on purchase of fixed assets by cash, Which used for bussiness purpose?

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 Yes!, depreciation is allowable on purchase of asset for business purpose by cash, subject to certain conditions. The asset must be used for the business or profession of the assessee, and it must be owned, wholly or partly, by the assessee. The asset must also have a useful life of more than one year. However, there is a restriction on claiming depreciation on assets purchased in cash. Section 43 of the Income Tax Act, 1961, disallows the capital expenditure incurred in cash for certain specified assets, including fixed assets. This means that if you purchase an asset for your business in cash, you will not be able to claim depreciation on the cost of the asset. There are a few exceptions to this rule. For example, you will still be able to claim depreciation on assets purchased in cash if the amount of the expenditure does not exceed Rs. 20,000. You will also be able to claim depreciation on assets purchased in cash if the asset is used for scientific research or for the purpos...
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ANNOUNCEMENT FOR EXTENSION OF LAST DATE OF MEF 2020-21

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 There is one Important Announcement for the members of ICAI regarding extension of time limit for submission online Multipurpose Empanelment Form along with the declaration for the year 2020-2021. Hereby informed the members of ICAI that last date extended from 12th October, 2020 to 23rd October, 2020. 


You can also see important ICAI announcement given as below:👇

Professional Development Committee

The Institute of Chartered Accountants of India

8th October, 2020

ANNOUNCEMENT FOR EXTN. OF LAST DATE OF MEF 2020-21

As you are aware that the Multipurpose Empanelment Form for the year 2020-21 is live at https://meficai.org. Considering the various requests and challenges being faced by the Members of ICAI due to Covid-19, it has been decided by Professional Development Committee to extend the last date for submission of online Multipurpose Empanelment Form along with the Declaration for the year 2020-21. It is hereby informed that last date is extended from 12th October 2020 to 23rd October 2020.

We wish to further inform that while submission of Financial Documents, there is no requirement for submitting the Financial Statements i.e. Balance Sheets and Income & Expenditure Account for the applicants who have opted for the Presumptive Taxation Scheme under Section 44ADA of Income Tax Act, 1961 and have filed their ITR accordingly for the financial year 2018-19. The option in this regard has been included in the Financial Documents Tab in MEF for the members to select.

Members may refer the "Advisory” while filling Multipurpose Empanelment Form 2020-21.

The MEF Applicants can write us on the Complaint Module of MEF (available at https://app.meficai.org/complaints) or at mefpdc@icai.in for any clarification, if required.


Chairman and Vice-Chairman,
Professional Development Committee




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