Accounting&taxation for agricultureland received inheritance

A/c entries 597 views 3 replies

Accounting & Taxation for Agriculture Land Received Inheritance

My father has received Agriculture Land inheritance after death of my Grand Father. 

What is accounting treatment of such agriculture land received ?

and what is Tax treatment for the same ?

Replies (3)

No tax on inheritance, the actual cost of land shall be NIL.

Capital gains on the sale are taxable for the inheritor.

 

Thanks..

 

But if I want to show this agriculture land in my balance sheet, at which value i can show this land in to balance sheet ?

 

asume that the value of agriculture land received my father is rs. 2250000 , and i want to show the same in balancesheet , than is it possible ? and if yes than how ?

For preparation of Balance sheet Cost of aacquisition shall be taken NIL. However you  can revalued your Assts at Market value by creating a revaluation reserve on liability side


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