Entry of Flat Sales

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2010 if i have a flat of rs.225000 90-91 & I sale it for rs. 14 lacs & invested in rural capital gain bonds in that sales month...of rs. 850000/- (8.5 lacs) and Rs.425000/- (4.25 lacs) given to my daughter in law.
pls tell me about accounts entry & also taxation related solution.

thanks in advance

VINOD ARORA

VINOD ARORA (Expert)
Follow

02 August 2010 Accounting entry may be passed by debiting bank account (14 Lac) and crediting asset account (2.25 lac) / profit on sale of assets (11.75 lac). Profit may be shown as credit to P&L A/c or in the case of individual directly added to capital account.

Further accounting entry relating investments and loan/gift to daughter in law also may be made appropriately,by crediting bank account.

In view of indexed cost of aqui. arriving at Rs.7.81 lac in 2009-10, capital gain amt is Rs.6.19 lac, which is sufficiently covered by investment in cap gain bonds. so no tax liability arises.

Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2010 Pls explain the calcution sir,

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