Reclassification of Capital Expenditure - Certain items

 

Reclassification of Capital Expenditure - Certain items

• Source: Railway Board Letter No.2023/F(X)-I/33/Misc/4 dated 06.04.2023 click for the letter  

 

• The following items are reclassified as Capital Expenditure w.e.f 01.04.2023

Items	Exceeding threshold limit i.e., Rs. One Lakh rupees or 3 years of useful life, either of two
	Classified as	Plan Heads
Office equipment, Furnitures & Fixtures	Capital Expenditure	41 - M & P - Machinery & Plant 64 - OSW - Other Specified Works
Computer Hardware, Computer Software & Telecommunication devices	Capital Expenditure	17 - Computerisation  Or Relevant Plan Heads
Vehicles	Capital Expenditure  (irrespective of its usage (office or otherwise)	41 - M&P - Machinery & Plant

 

• Hence, the above items (except Vehicles) which are within threshold limit i.e., Rs. One lakh or less than 3 years of useful life are classified as Revenue Expenditure. 

 

• The above items are procured either as part of the sanctioned work or through lumpsum provision.  

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