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Accounting&taxation for agricultureland received inheritance

NICKOONJ VANANI (ARTICLE) (65 Points)

21 February 2016

Accounting & Taxation for Agriculture Land Received Inheritance

My father has received Agriculture Land inheritance after death of my Grand Father.

What is accounting treatment of such agriculture land received ?

and what is Tax treatment for the same ?

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3 Replies

Aanand Jha (Employed) (692 Points)
Replied 21 February 2016

No tax on inheritance, the actual cost of land shall be NIL.

Capital gains on the sale are taxable for the inheritor.

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NICKOONJ VANANI (ARTICLE) (65 Points)
Replied 22 February 2016

Thanks..

But if I want to show this agriculture land in my balance sheet, at which value i can show this land in to balance sheet ?

asume that the value of agriculture land received my father is rs. 2250000 , and i want to show the same in balancesheet , than is it possible ? and if yes than how ?

Aanand Jha (Employed) (692 Points)
Replied 22 February 2016

For preparation of Balance sheet Cost of aacquisition shall be taken NIL. However you can revalued your Assts at Market value by creating a revaluation reserve on liability side

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