23 June 2009
A company engaging in developing and constructing Housing Projects in india.Eligible to Claim Sec.80ib(10).Seperately accounted land in fixed asset schedule as the land is purchased in the name of the company.profit on sale of land is seperately accounted .Whether the profit on sale of land is also eligible to claim deduction u/sec.80IB(10)?
23 June 2009
If company is selling combinely ready made building along with land than profit on sale of land will also be eligible for 80IB(10) Deduction. In case u first enter for sale agreement of land and later constructed then profit on land will not be eligible.
23 June 2009
For a company dealing in real estate business to avail tax benefits u/s 80IB(10) the land purchased for development and sale as a housing project is a current asset and not a fixed asset Please see Accounting Standrads ICAI on Fixed Assets so accordingly redraft yourfinal accounts
CAclubindia
