Using a building premises for free

if a firm is using a building premises for free does it is recorded as income/benefit in p&l a/c??
Replies (5)
Quick Summary
This discussion explores whether using building premises for free should be recorded as income or a benefit in a company's profit and loss account. While Section 28(iv) of the Income Tax Act may allow for such benefits, it's clarified that this doesn't necessarily impact the main financial statements. The consensus leans towards separate disclosure rather than direct income recognition, as only commercial transactions are typically recorded for tax and investor purposes.

Will not effect any of the financial statement.
It's disclosure is seperate.
@ sabyasachi Mukherjee please explain what does seperate disclosure in details
thanks in advance
Sec 28iv you can take benefit . But not in cash .

Section 28(iv) hitherto provides that any value of benefit or perquisite, whether convertible in money or not, arising from business or exercise of a profession would be considered as income and shall be chargeable to income tax as business income.?? Maybe disclosure is proper. It doesnt impact financial statement cause there is prescripttion that accounting stands must definitely have a ppe. So no need to record it. Apart from revenue recognition, nothing which is free needs to be presented in the financial statement. Because only commercial transactions are recorded for tax purposes and investors

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