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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Where to invest and where there is more security of money ? : Investment Guide

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 Thereare lots of advertisements and calls comes for investment and many people's are blindfolded trust on it and made investment without any examination of documents and terms and conditions. We saw that a lot of people's money sank in PACL. However, there are no any investment to make you a richest earlier.


Where to invest and where there is more security of money ? 

 Let's comes I clarified your doubt and know about new safe and attractive tax benefited investment scheme. It's name is PPF Account Scheme. Public Provident Fund (PPF) is a tax-free saving scheme regulated by the Indian Government.

It is a long-term investment scheme with a lock-in period of 15 years. Individuals can start investing in  PPF with a minimum amount of Rs. 500 p.a. The interest rate is set and paid by the government for every quarter.

PPF is the undisputed king of investments and taxes

Here,I clarified this scheme in full details as below:

1) What is PPF Account?

Public Provident Fund is a savings schemes established by the Central Government.
It is a safe, tax benefits with attractive returns that are fully exempted from Income Tax. It's falls under E-E-E categories. It is a long term savings scheme. 

2) What are Features of PPF Account?

• Safe Investment
• Gauranteed Return
• Handled by Central Government
• Attractive Tax Benefits
• Long term Saving Scheme
• PPF Account is not attached with any claim in case of any debt or liability of Companies.So, money is always yours. Hence, I suggested to invest in this scheme.

3) What is the Eligibility of opening PPF Account?

• An individual who is a residents in India can open a PPF account in his/her name.
• Also, he/she can open another PPF account on behalf of a minor for whom he/she is the legal guardian.
• Minor will operate the account himself/herself , when minor becomes major.
• Individual have only one PPF Account either in Bank or Post Office.
• No joint account is allowed.
• Individual having General Provident Fund or Employees Provident Fund can also open a PPF account.

In the Case of NRI Eligibility:

• NRI are not eligible to open a new PPF account.
• But, if a resident having a PPF account becomes NRI, then he/she can continue the account till maturity on a non-repatriation basis. 
• No extention is allowed after maturity.


4) Where can you open PPF Account?

✓ State Bank of India and it's Associates
✓ Head Post Office
✓ Any Nationalised Banks
✓ Also, Some Private Sector Banks.

5) How much amount can deposited?

• Minimum deposit required per financial year is Rs.500. 
• Maximum deposits allowed per financial year is Rs. 1,50,000.
•  Deposits amount should be bin multiple of Rs. 5.
• Deposits can be made in one lum-sum basis or 12 installments in a per financial year.
• Those 12 installments need not be in every month. They can be any time during the financial year.
• The maximum amount deposits limit is for both individual self account and minor account ,for whom he/she is legal guardian, it's takes together.

6) What is Best Time to Deposit?

Amount deposited in the beginning of the financial year earns more interest than the amount deposited towards the end of the financial year.


7) What is the Interest Rate?

The current interest rate on PPF is 7.1% compounded annually.

Annual interest rate is not fixed ,And it is determined by the Central Government from time to time. Interest payable on PPF is fixed quarterly by Ministry of Finance, Government of India from April 1st, 2016. It is note that earlier interest credited on yearly basis

8) What is Tax Benefits?

✓ Deposits upto Rs. 1,50,000 in a financial year qualify for tax rebate under section 80C of the Income Tax Act.
✓ Interest earned and withdrawals are completely tax free.
✓ Maturity amount is tax free.
✓ The amount in PPF is totally exempt from wealth tax.

9) Is there availability any loan facility in PPF Scheme?

• Loan facility is available from 3rd financial year to 6th financial year of opening the account.
• Individual is only eligible for loan on Active PPF account. 
• The eligible loan amount is 25% of the account balance at the end of the 2nd financial year immediately preceding the year in applied for loan.
• The loan principal amount should be repaid within 3 years from the first day of the month following the month in which the loan is sanctioned.
• The loan principal amount can be made in one lum-sum or in a 36 monthly installments.
• Once the loan principal amount repaid, then the loan interest to be repaid within 2 monthly installments.

10) What is lock-in-period or Maturity period?

• In PPF Scheme with a lock-in period of 15 years. After 15 years PPF amount matured.
• You can withdraw the entire balance any time after the completion of 15 financial years from the end of the financial year in which the account is opened.
• PPF account even extended after the maturity periods in the block of 5 years. The extension with / without deposits.
• If you want to extend this scheme then you can do so before one year of maturity.

11) What is the Withdrawal criteria?

✓ Partial withdrawal is allowed from 7th financial year of opening the account.
✓ Only one withdrawal is available per financial year.
✓ You are eligible for withdrawal if your account is active, Inactive account would not be quility for withdrawal.
✓ Withdrawal limit is 50% of account balance standing at the end of the 4th financial year immediately preceding the financial year of withdrawal or at the end of the financial year, whichever is lower.
✓ If you had availed any loan, then the unpaid loan amount will be deducted from the withdrawal amount.
✓ Any amount withdrawn then is not repayable.

12) Is there any facilities of PPF Account transfer?

PPF Account can be transferred from:
• One bank to another bank
• One post office to another post office
• Contra transfer like one bank to another post office or vice versa.
• It is note that PPF account can't be transferred from one person to name of another person.














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