DEAR ALL
MY CLIENT HAS SOLD THEIR AGRICULTURE LAND WHICH IS EXEMPT FROM TAX.I NEED WHETHER THE SAME CAN BE ADDED TO RESERVES AND SURPLUS OR IT HAS TO BE ROOTED THROUGH P&L ACCOUNT IF WE DO THE SAME IN P&L ACCOUNT WHETHER MAT WILL ATTRACT.
PLEASE HELP ME ON THIS WITH ACCOUNTING STANDARDS AND PROVISIONS.
THANKS IN ADVANCE
Hi , I am of the opinion ,if we go by the provisions of mat i.e section 115JB , then this income will be excluded as only income under the provision 10(38) income is included and also expenses related to that.
As per accounting standards , land sold depends upon whether it was held as fixed assets or investments And for this you need to refer to the AS -10 and AS -13 . And in both cases I think both the gains/loss should be recongnised in the p/l a/c , however in case of previous revaluation case would be bit different..
CAclubindia
