About revaluation
This query is : Resolved
22 November 2013
sir,
I am preparing personal balance sheet of one of my client bcz he wants to take a loan from bank. He has agricultural land which he got in inheritance from his father, and his father from his grandfather. Now i want to ask on what amount, we have to show the land as his capital , for showing the good worth .
Approximate today's that land value about 6 crore.
Thanks,
I am preparing personal balance sheet of one of my client bcz he wants to take a loan from bank. He has agricultural land which he got in inheritance from his father, and his father from his grandfather. Now i want to ask on what amount, we have to show the land as his capital , for showing the good worth .
Approximate today's that land value about 6 crore.
Thanks,
22 November 2013
value at Nil or at the value as per tax laws.
22 November 2013
no need to put any revaluation to 6 cr as it would create an anomaly in case you sell the land.. it would no accounting gain but a huge tax gain and consequent liability.
22 November 2013
Sir,
sry bt not revaluing, i m just asking at what amount to show in personal balance sheet because i want to show worth .and no tax liability as he got by inheritance.
sry bt not revaluing, i m just asking at what amount to show in personal balance sheet because i want to show worth .and no tax liability as he got by inheritance.
22 November 2013
Dear Dixit, that is what I said that you may show it at Nil or tax value (ie cost to the previous owner). In case the balancesheet is being prepared for some bank loan, then you may show its market value.
The tax angle I am talking about is if and when you decide to sell this property.
The tax angle I am talking about is if and when you decide to sell this property.
22 November 2013
thank u nikhil sir......
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