Bringing Property into Books

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Sumit B Choksi (Querist)
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16 July 2011 My Client is facing the following situation:

He is currently staying in Gujarat from 20 years. He wants to bring into his books (i.e Balance Sheet) land & building owned by his deceased father. His father had died 20 years ago. His father in his will has stated that "all his belongings will belong to his son after death". No particular property or item is mention in that will. This property is in Rajasthan and was owned by his father and forefathers. How should the assesse bring this property into his own books. What is the legal way and the best way.

Please provide all the details step-wise... i.e. whether to make a will, whether to get the property registered on his own name etc. etc..

Please help very urgent...!!!

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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16 July 2011 In case of ancestral property, option of taking them into HUF may also be considered.
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It is said that where there is a will there is a way. Here will is made by the father so assessee can credit his/ his HUF's capital account and debit the respective asset a/c by showing in narration that the property has been received in inheritance or succession.
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Apply for name transfer, in case of immovable property wherever required.
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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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16 July 2011 Sorry, I disagree with the expert. Before anything first of all you have to get a sucession certificate and get the probate of the property in your name if you are the only legal heir. In case there are other legal heirs and the property is to be passed on to them also then in the sucession certificate their name is also required to be included. The sucession certificate is to be procured from the court with the help of an advocate on the strength of the will.

Once you get the probate of the property then you get it valued on the date of probate and with the value as determined by the registered valuer credit your as well the account of all the owners of the land with the ratio by the amount on the liability side with the narration (value of ancestral property credited through will as per contra).

On the assets side you show the LAND as an asset and the narration (value of property from the estate of late fathr....... as per will dated......)

This way you can bring the property in your balance sheet without paying anything as Capital Gain and that too at market value also.

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