Gift
This query is : Resolved
sumit jain
(Querist)
30 September 2011
Suppose i received a building as gift..
Do i need to show it in my Balance sheet..
If yes then at what value..
Do i need to show it in my Balance sheet..
If yes then at what value..
30 September 2011
Yes, you need to show the building in your books.
You can take the fair market value of the building as the cost.
You can take the fair market value of the building as the cost.
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30 September 2011
Agree with Expert
sumit jain
(Querist)
01 October 2011
sir
what shall be the entry to be entered in accounts
what shall be the entry to be entered in accounts
CA Pushpendra Gaur
(Expert)
01 October 2011
No you are required to show the same as at nominal value no need to value it at cost as you have not paid anything for it
CA Pushpendra Gaur
(Expert)
01 October 2011
well, if the building is received as part of business gift then in such case, it should be reorded at Income and measured at fair value of market
CA Pushpendra Gaur
(Expert)
01 October 2011
The netry in both the cases will be
Building A/c DR
To P/L A/c
Building A/c DR
To P/L A/c
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sumit jain
(Querist)
02 October 2011
I think that the entry should be:
Building A/c DR
To Capital A/c
(With the cost of previous owner)
Bcoz if we pass the entry through profit & loss account the its value will increase my profit..
Please share your opinion on this..
Building A/c DR
To Capital A/c
(With the cost of previous owner)
Bcoz if we pass the entry through profit & loss account the its value will increase my profit..
Please share your opinion on this..
03 October 2011
The entry will be as under:
Building A/c Dr.
To Gift Received (Income)
Gift received will go to P&L, but for income tax purpose, it will be taxed under Income from Other Sources and not Business Income.
Building A/c Dr.
To Gift Received (Income)
Gift received will go to P&L, but for income tax purpose, it will be taxed under Income from Other Sources and not Business Income.
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