A/c treatment,tax liability regarding sale of inherited land
This query is : Resolved
16 December 2014
Query ?? Need an Expert opinion
" ACCOUNTING TREATMENT & TAX LIABILITY REGARDING SALE OF INHERITED LAND WORTH OF RS 5 CRORE "
My client is an advocate , during the financial year 2013-14 , he sold inherited rural land via sale deed due to some financial reasons & At present he is the owner of some land ( inherited as well as purchased 10-15 yrs before ) worth of Rs 10-15 crores & now for the first time he wants to file income tax return .
Now I want to show all the immovable property ( i.e, land worth of Rs 10-15 crores ) in the balance sheet for the a.y 2014-15 ,
1) Can i do that ? if yes,
2) then what should be the proper accounting treatment ?
3) And i don't want to show the above sale transaction occurred during the f.y 2013-2014 , Can i do that ? If yes, pls clarify , If No , then also clarify with provisions .
CAN i stand that it is not a transfer as per capital gain ? if yes pls clarify ?
Regards
" ACCOUNTING TREATMENT & TAX LIABILITY REGARDING SALE OF INHERITED LAND WORTH OF RS 5 CRORE "
My client is an advocate , during the financial year 2013-14 , he sold inherited rural land via sale deed due to some financial reasons & At present he is the owner of some land ( inherited as well as purchased 10-15 yrs before ) worth of Rs 10-15 crores & now for the first time he wants to file income tax return .
Now I want to show all the immovable property ( i.e, land worth of Rs 10-15 crores ) in the balance sheet for the a.y 2014-15 ,
1) Can i do that ? if yes,
2) then what should be the proper accounting treatment ?
3) And i don't want to show the above sale transaction occurred during the f.y 2013-2014 , Can i do that ? If yes, pls clarify , If No , then also clarify with provisions .
CAN i stand that it is not a transfer as per capital gain ? if yes pls clarify ?
Regards
CA R SEETHARAMAN
(Expert)
16 December 2014
Sale of rural agricultural land is exempted from tax.
You should have deposited the sale value in the bank account so file return for financial year 2013-14.
Your client being advocate will be earning taxable income, by clubbing agricultural income for rate purposes tax should have been paid and return filed during previous years.
You should have deposited the sale value in the bank account so file return for financial year 2013-14.
Your client being advocate will be earning taxable income, by clubbing agricultural income for rate purposes tax should have been paid and return filed during previous years.
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