Home > Experts > Income Tax > Disclosure of inherited property in personal balance sheet

Please Wait ..

Disclosure of inherited property in personal balance sheet (Income Tax)

This query is : Resolved

Author : Anonymous

( Author )
03 August 2012

Good Evening everybody....i have a query which i hope to be resolved in this forum..

'A' inherited a house property from his father. 'A' is a partner of a firm. The firm has a sanction of Cash Credit of Rs. 50 lac. from a bank where the same house property is given as a collateral security. Should the same properety be shown in the personal balance sheet (Capital A/c.) of 'A'? If yes, what would be the consequence of non-disclosure of such property???

CA Guru M

( Expert )
03 August 2012

I assum that Mr.A has introduced his inherited HP to firm as his capital/additinal capital.

Firm has obtained CC Limit by providing above HP as collateral security from Bank.

In my view since the HP becomes the property of the Firm it should be shown in Firm's Balance sheet only.

However while submitting net worth statements to bank, the above HP will be shown in Mr.A's net worth statement.