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Change in the definition of Actual Cost of asset

Change in the definition of Actual Cost of asset :

CLAUSE(S) OF
FINANCE BILL,
2017 		 PARTICUL ARS OF AMENDME NTS SECTION AMENDMENT / NEWLY
INSERTED		 APPLICABLE
W.E.F. 		 BRIEF OF AMENDMENT 
16 Change in the
definition of
Actual Cost of
asset		 43(1) and
35AD		 New
Explanation
inserted		 1/4/2018 Revenue Cash Expenditure in parity with Capital cash
Expenditure Now onwards –

1. It is proposed to amend the provisions of section
43 of the Act to provide that where an assessee incurs
any expenditure for acquisition of any asset in respect
which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft or use of electronic clearing system through a bank account, exceeds ten thousand rupees, such expenditure shall be ignored for the purposes of determination of actual cost of such asset.

2. It is proposed to amend section 35AD of the Act to provide that any expenditure in respect of which payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or an account payee bank draft or use of electronic clearing system through a bank account, exceeds ten thousand rupees, no deduction shall be allowed in respect of such expenditure.
Budget 2017 | Adreeja Kaur |

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