A/cting treatment for residential property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 May 2012 IF an aaset is non depreciable residential property & was purchased five years ago .i.e. in 2005, but the assesse had filed a IT return for previous year as a proprietor of firm & had not disclosed such property in its account books & IT return. So, my question is how to give a treatment of such asset in account books so as to make it a part of such assesse's balance sheet. Also, if such asset is now disclosed in account books then will there be any risk or tax on such price of property, if such mistake is discover during scrutiny by the AO?

Also, render me the time period for revision of any IT return?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

24 May 2012 The property is a personal property and will appear in the personal Balance Sheet of the owner.

The Balance Sheet of the business will not include such property because it does not belong to the business.

Querist : Anonymous

Querist : Anonymous (Querist)

25 May 2012 But if the assesse maintains only bussiness return as a proprietor & wants to disclose such personal asset in its business balance sheet then what will be its treatment?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

25 May 2012 Building A/c Dr
to Capital A/c

Querist : Anonymous

Querist : Anonymous (Querist)

26 May 2012 So, Bhardwajji - it means that an asset purchased 5 years ago can be given such treatment TODAY, & it will not consist any rick to be discovered as concealment of income by Assessing officer (if any)???

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

28 May 2012 The asset was purchased 5 years ago as PERSONAL PROPERTY.

Today it has been introduced into business and has now become a business asset.

So there will not be any problem.

However, if the purchase of asset was required to be declared in AIR and the assessee has not declared the same, the assessee will face problems.

Querist : Anonymous

Querist : Anonymous (Querist)

01 June 2012 Resp. Bardwaj Sir, can you please explain it n simple words .i.e. what does the statement of 'Declaring a purchase of asset in AIR' means?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

04 June 2012 Purchase or sale by any person of immovable property valued at thirty lakh rupees or more was required to be declared under AIR in the income tax return.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now