Hi experts
I have a small doubt and I start with an example
Name of company X
one of the director companies has a property land
but by mistake company make an agreement of rent with a third party and start getting rent income
so now what can we do
You can bring that land as acquired with new company msideration and recognise it in the assets.
Rental income is taxed disallowed expense, which means the taxable profits will include this amount and will be taxed at corporate tax rate.
Next, it can give rise to deferred taxes when there is a temporary difference. You have to find out the profitability impact from tax planning.
Assets and liabilities will mismatch if you bring that property into business.
so, it’s management decision
***meant without consideration
***disallowed income and hence it’s taxable income
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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