Taxation of revaluation of firm's immovable property
This query is : Resolved
sureshchand yadav
(Querist)
07 May 2012
e.g, Book value of firm's property is
Rs.1,00,000/-
Property is to be revalued at Rs. 1 crore.
If the difference of 99 lakhs is credited to Partner's Capital Account, the gain will be taxable in the hands of Partners or partnership firm?
And if the accounting treatment is incorrect, what is the correct accounting for the same?
Suresh Yadav
CA Final student
Rs.1,00,000/-
Property is to be revalued at Rs. 1 crore.
If the difference of 99 lakhs is credited to Partner's Capital Account, the gain will be taxable in the hands of Partners or partnership firm?
And if the accounting treatment is incorrect, what is the correct accounting for the same?
Suresh Yadav
CA Final student
Sumti Bhadani
(Expert)
07 May 2012
1. Capital gain is attracted when there is a transfer of property. Since there is no transfer of property, therefore there will be no capital gain tax.
2. You can also revalue the assets by passing one of the following entry:
a) Assets A/c Dr.
To Revaluation Reserve
b) Assets A/c Dr
To Partner's Capital A/c
2. You can also revalue the assets by passing one of the following entry:
a) Assets A/c Dr.
To Revaluation Reserve
b) Assets A/c Dr
To Partner's Capital A/c
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
- EPF ECR NEW FILE SEP 17TH 2026
- Utilisation Fy 25-26 TDS challans in Fy 26-27 TDS Return
- GST on Renting godown to KFCSC for Storage of Raagi
- TAX AUDIT ON PROFESSIONAL INCOME
- TDS on Fixed Assets purchased
- Capitalgain tax purposes for valuation report compulsory
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- Oct 2025 Invoices
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
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
