Tax payable on sale of non recorded house property..
This query is : Resolved
23 December 2014
Land purchased in 1933 for rupees 55 only, house constructed in 1983/84. Expenditure for house construction was rupees 70,000 only. That particular house sold on 26/02/2014 for rupees 11,21,000 only.
What will be amount of tax if fair value of that land on 1.4.1981 was rupees 10,000 only?
How to treat above transaction Income tax and Accounting if land and building not recorded in Income tax and Accounting?
What will be amount of tax if fair value of that land on 1.4.1981 was rupees 10,000 only?
How to treat above transaction Income tax and Accounting if land and building not recorded in Income tax and Accounting?
Guest
Guest
(Expert)
23 December 2014
First include house property at fair value by crediting Capital (individual) and debiting land.
Then calculate indexed value and capital gains on the same.
The remaining procedure is the same as normal.
Then calculate indexed value and capital gains on the same.
The remaining procedure is the same as normal.
Message likes :
1 times
24 December 2014
Full value consideration 1120000
Less Indexed cost of acquisition: (93900)
Less Indexed cost of improvement : (566638)
Long term capital gain 460462
93900=10000/100*939
566638=70000/116*939
You have two way to maintain books of account,
1st by directly booking credited sale proceeds in Individual capital account
Bank A/c 11,21,000
To Capital A/c 11,21,000
2nd by first create asset in books then sold
Asset 55
To Capital A/c 55
BAnk A/c dr. 11,21,000
to Asset A/c 55
to profit on sale/capital account 11,20,945
Less Indexed cost of acquisition: (93900)
Less Indexed cost of improvement : (566638)
Long term capital gain 460462
93900=10000/100*939
566638=70000/116*939
You have two way to maintain books of account,
1st by directly booking credited sale proceeds in Individual capital account
Bank A/c 11,21,000
To Capital A/c 11,21,000
2nd by first create asset in books then sold
Asset 55
To Capital A/c 55
BAnk A/c dr. 11,21,000
to Asset A/c 55
to profit on sale/capital account 11,20,945
Message likes :
1 times
26 December 2014
Is it justified to take face value as on 01.04.1981 as cost of acquisition even if original cost of acquisition is available?
If yes, then as per which section it is permissible?
If yes, then as per which section it is permissible?
Guest
Guest
(Expert)
26 December 2014
Explanation (iii) to Section 48 contains the provision for indexed cost of acquisition. You may refer to that.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Deemed Capital Gain
- Regarding ITR filing with more value than showing in AIS/TIS
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Exiting partner in partnership firm in gst portal
- Rental income of jointly held property
- Accounting with Claude
- ASMT-10 received from A O
- Traces submitting correction statement error
- Banking Related Issue
- Can a single LLP in India legally operate multiple unrelated businesses (Travel, Cloud Kitchen, Ecom
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
