Accounts and income tax
This query is : Resolved
18 July 2013
In a Partnership Firm one of the Partner purchases a immovable property at Rs. 1.05 Crores. And he paid cash Rs.30 Lakhs and by Cheque Rs.15 Laks through Firms Bank Account. And a partner is agree to pay the balance amount after some days by cash or cheque. All sale agreements are in the Name of the Partner not Firm.
The Question is what is the accounting treatment in the Firms Books? How I treat?
And what is the tax implication regarding Cash payment?
The Question is what is the accounting treatment in the Firms Books? How I treat?
And what is the tax implication regarding Cash payment?
18 July 2013
IF PROPERTY IS IN PARTNERS NAME AND PAID FROM FIRMS A/C THEN IT SHOULD BE TREATED AS LOAN TO PARTNER AND BOOK ENTRY ACCORDINGLY.
CASH PAYMENT WILL BE DISALLOWED U/S 40A.
CASH PAYMENT WILL BE DISALLOWED U/S 40A.
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