Hi, my client has inherited agriculture land in FY 2016-17 in Punjab. Valuation is not available for FY 2016-17 but in FY 2018-19, he has a proper valuation report from a professional.
can I show the same value of FY 2018-19 in Balance sheet of FY 2016-17 or Use Cost if Inflation Index to back calculate the rate for FY 2016-17 or use the Circle Rate downloaded from website.
please suggest.
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Inherited Agriculture Land Valuation
Replies (3)
Since the land is inherited, the value shall be the cost to the previous owner because carrying value of fixed assets shall be historical cost less depreciation/ammortization. Valuation by a Professional shall not be correct from Accounts point of view.
Hi Sir, my client received the land from his father and this land was acquired long back by his father, and the value is not ascertainable. What can we do in this case.
If the land is used for business and you want to therefore bring it on the balance sheet , then you will have to take a document which would detail the actual cost of the land and major improvements thereof. An affidavit from the current owner or any person in the family having knowledge of this matter stating the approx cost shall be conclusive.
I sincerely would not advise capitalizing at a value derived by valuer as on 01.04.2001 or on the date of inheritance etc.
In case, the land is not used for business, then it's completely ok to keep it outside the(business) balance sheet. or put it other way treat it as if it is on the personal balance sheet.
I sincerely would not advise capitalizing at a value derived by valuer as on 01.04.2001 or on the date of inheritance etc.
In case, the land is not used for business, then it's completely ok to keep it outside the(business) balance sheet. or put it other way treat it as if it is on the personal balance sheet.
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