Recognition of source of fund
One of our clients, have made a deposit of 23 lakhs out of a sale of land worth 48 lakhs.... The legal owner of the land is our client's daughter, who resides in UK. Our client is the power of attorney, who carried out the sale on his daughter's behalf, and deposited the 23 lakhs in his name in FD. Now, how can we recognise this source in the books? Can we recognise it as his proceeds from sale of land, or should we account it as a gift from his daughter?
Replies (3)
Did the daughter file return and pay capital gain tax on the sale of land?
Not yet..... Will this affect the power of attorney?
She should file return and pay the tax and then the client(her father) can show the amunt as a loan from her/or gift from her in his balance sheet.
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