Taxation of revaluation of firm's immovable property
This query is : Resolved
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
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
- CG Tax On residential property
- Post Office RD Interest
- Applicable TDS for Purchase of Flat from NRI
- Building and other construction workers welfare cess act 1996
- Eway bill for machinery reparing
- Bank Accounts in Balance Sheet for ITR 3
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- Gift of mutual fund units to daughter
- Form 10BD Filling
- Annual return of gst limit
- Which ITR To be filed by dentist
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
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
