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income tax

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Querist : Anonymous

Querist : Anonymous (Querist)

06 March 2011 if i paid registration fees of a plot in cash Rs 157000 at a time.
what will be the tax treatment of this transaction?

My doubt is:-
1- Is this revenue nature transaction or a capital nature transaction?

2- will the entire amount goes to P&L a/c or direct transfer to value of Plot?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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06 March 2011 1) If the plot is not treated as "stock in trade", the expenditure can be classified as capital expenditure. Otherwise, it is revenue in nature.
2) In the latter case, goes to p &l and in the former goes to the value of the plot.

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