Capital Gain and Loss

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This discussion clarifies the accounting treatment for capital gains and losses. It explains that grandfathering costs are not considered in accounting entries, where gains are recognised based on actual values. The grandfathering effect is only relevant when calculating tax liability.

Mahesh Jadhav

Mahesh Jadhav (Querist)
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27 July 2023 Hi,

What should be the accounting effect for Capital gain and Loss ?

Should I consider Grandfathering cost in Accounting ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 July 2023 No grandfathering effect in accounting. There the capital gain will be as actual.
Only during calculation of tax liability, the grandfathering plays in.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 September 2024 Good Luck.

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