About revaluation

This query is : Resolved

Dixit Setia (Querist)
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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,

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 November 2013 value at Nil or at the value as per tax laws.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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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.

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Dixit Setia

Dixit Setia (Querist)
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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.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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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.

Dixit Setia

Dixit Setia (Querist)
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22 November 2013 thank u nikhil sir......