Accounting of plot purchased for personal purpose

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CA
57 Points Posted on 15 August 2021
At what value a plot is recorded in balance sheet? purchased price or stemp duty value?
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On 15 August 2021 at 16:09 Report
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When purchasing a plot for personal use, it should be recorded in your balance sheet at its purchase price. If the purchase price is less than the Stamp Duty Value (SDV) by more than Rs. 50,000, the difference generally needs to be recognised by the buyer. This difference is typically treated as other income for tax calculation purposes, not necessarily for your main P&L account.

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Chartered Accountant
24588 Points Posted on 15 August 2021
Purchase price
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On 15 August 2021 at 19:01
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CA
57 Points Posted on 16 August 2021
Thank you.. if my purchase price is less than SDV and difference is more than Rs.50000/- then do I need to book difference amt as other income in P& L account????
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On 16 August 2021 at 16:09
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Chief Accountant
3150 Points Posted on 17 August 2021
In book of account, it's recorded at purchase price only.
other income concept, u r saying is applicable only for tax calculation purpose
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On 17 August 2021 at 02:13
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Chartered Accountant
24588 Points Posted on 22 August 2021
Yes the difference should be recognised by the buyer
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On 22 August 2021 at 06:22

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