Section 16 - Amendment of section 43. - Finance Act, 2017

Amendment of section 43. 16. In section 43 of the Income-tax Act, in clause (1), with effect from the 1st day of April, 2018,- (a) after the proviso and before Explanation 1, the following proviso shall be inserted, namely:- Provided further that where the assessee incurs any expenditure for acquisition of any asset or part thereof in respect of 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 an 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. ; (b) in Explanation 13, the following proviso shall be inserted, namely:- Provided that where any capital asset in respect of which deduction or part of deduction allowed under section 35AD is deemed to be the income of the assessee in accordance with the provisions of sub-section (7B) of the said section, the actual cost of the asset to the assessee shall be the actual cost to the assessee, as reduced by an amount equal to the amount of depreciation calculated at the rate in force that would have been allowable had the asset been used for the purpose of business since the date of its acquisition. .