Dear friends and respected seniors,
Person A had bought a bungalow around 10 years back. The bungalow is not used for business in any way and no loans are taken against it. Bungalow is only used as a holiday home. The bungalow's current value after indexing is around 15 lakhs.
Person A has been filing ITR 1 since last 10 years as the income was only from salary, fixed deposits interests and bank savings interest.
In FY 18-19 Person A started a business. Now, his source of income includes
1) Income from Salary, Fixed deposits interests and bank savings interest which is around 8 lakhs.
2) Income from business after deducting expenses is around 5 lakhs.
My query is
1) If the income is more than 50 lakhs, then all assets have to be shown in ITR form but here the person's income is around 13 lakhs, so is it compulsory to shown in balance sheet of ITR-3 form the value of Bungalow which was bought 10 years back ?
2) If the value of this bungalow is not shown in balance sheet of ITR-3, will it be termed as undisclosed investment ?
3) If the value of this bungalow is to be shown in balance sheet of ITR-3, will it be correct to show it under Investments>> Long-term investments>>Government and other Securities – Unquoted ?
Awaiting your replies.