CAF-2 · Chapter 8 · Question 10 of 15
Mr. Ahmed purchased a commercial shop for Rs. 6,000,000 to use as his business office. He paid the entire amount in physical cash. Under Section 75A, what are the tax implications of this cash transaction?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) D) All of the above.
Explanation
Under Section 75A, purchasing immovable property > Rs. 5 million in cash means it is ineligible for depreciation, the amount is not treated as cost on disposal, and a 5% penalty applies.
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