One of my clients had purchased a shop for Rs. 150000 in F.Y. 1998-99. Through over sight the investment made in the shop was not recorded in the Balance Sheet.Now during the F.Y. 2008-09 he wants to sale the same for Rs.450000 (the value prescribed by Stamp Duty Authority).Now he wishes to show this transaction in the books of accounts.
Now my questions are:
1. Does he liable to pay tax on L.T.C.G. of Rs.201282 (450000-248718 being indexed cost of acquisition)?
2. Will entire Sale Value of Rs.450000 will be liable to tax in the year of sale i.e. F.Y. 2008-09?If yes how?
Kindly opine with remedy
CAclubindia
