banner_ad

Entry for purchase of land

This query is : Resolved 
Profile Image

Profile Image

(Querist)
02 April 2018 Dear sir,

We have paid purchase price for land Rs 2 Cr and stamp duty paid on Rs 3 Cr. How much we record in books whether 2 Cr or 3 cr.

Please provide the entry. and what will be the impact from income tax point of view.


Thanks
Profile Image

ND

Profile Image

ND (Expert)
02 April 2018 The cost of land will be Rs. 2 Cr along with the cost of stamp duty paid. Under Income Tax please refer section 50C wherein it is stated if value for stamp duty is higher than the actual cost, then value for stamp duty will be treated as the cost . However there will not be any change in the accounting entry but for calculating capital gains, etc the value for stamp duty shall be considered.
Profile Image

kumar

Profile Image

kumar (Querist)
02 April 2018 Thanks for reply. Means accounting entry will be as follows :-

Land a/c ----- Dr 2 Cr
Stampduty a/c ------------- Dr
To Bank


Sir, have following doubt under income tax purpose

1) will 50c applicable ?
2) capital gain impact will arise when we sale the land and will be calculated on the basis of paid price, is it correct ?


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


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news


Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
18 May 2026
MIS Executive

Primarc Pecan Retail Limited

Mumbai

B.Com

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
ARTICLESHIP 15 May 2026
Audit Assistant / Article Trainee / Intern

SSGS and Associates

Chennai

CA Inter

View Details