Accounting nad income tax treatment

Mr A is in trading business of Land & Property. He has purchased a land for rs. 8lcas & its stamp duty value of rs. 10lacs and there is a difference of rs 2lacs. Which is taxable. Now the question is

1) whether he can enhance the value of land to 10lacs in his book?

2) if sales the same land subsequently what will be its cost 8lacs or 10 lacs?

Please reply

 

 

Replies (1)
Stamp duty valuation only for the purpose of payment of stamp duty as per the stamp duty act. Also the cost of land remain 8 not 10. The income tax department will see seller side and take sales consideration which ever is higher i.e. 10.

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