Now the provisions of Section 50C extended to cover immovable property held as
stock in trade form AY 2014-15 [Section 43CA]:
Where the consideration for the transfer of an asset (other than capital asset), being land or building or both, is less than the stamp duty value, the value so adopted or assessed or assessable shall be deemed to be the full value of the consideration for the purposes of computing income under the head “Profits and gains of business of profession”.
I want to know as to how to show the sale amount in the P&L a/c of a construction business where say the agreement amount (which is actually recd) is Rs 43 L and Stamp duty valuation is Rs 50L. If we show Rs 50L as sale, we will have to show Rs 7 L as receivable from the buyer which is not correct (will it be allowed as discount/ bad debts as it is irrecoverable?)
CAclubindia
