TaxTMI 
TaxTMI 
FIXED ASSET
SRINIVAS PALAKODETI
WE HAVE PURCHASED A PAINTING COSATING RS. 400,000/-. HOW AND IN WHICH CATEGORY OF FIXED ASSETS UNDER THE COMPANIES ACT AND INCOME TAX ACT CAN WE CAPITALIZE THE SAME.
Clarification sought on classifying a Rs. 400,000 painting as a fixed asset under Companies Act and Income Tax Act. An individual inquired about categorizing a purchased painting costing Rs. 400,000 as a fixed asset under the Companies Act and Income Tax Act. A respondent requested details about the company's business and the product. The inquirer clarified that the company is in the insurance business and the product is a painting. Another respondent suggested capitalizing it under the office building if used in the office. A final response indicated that if the painting is part of building renovation, it should be debited to the building account under both Acts. (AI Summary)