14 September 2019
I have received building from related person covered under income tax worth Rs 5L and paid the stamp duty for the gift deed & has duly registered the deed. Now my question is Whether i can book the whole value of gift in my books of account? If yes provide the basis to show in the audit?
16 September 2019
Thank you very much sir My auditor is not ready to support and i need some more details to convince him to disclose the gifted amount
He says that if i will disclose the gifted land in the fixed asset we need to increase capital by Rs 5lacs and there may be possibility for the Assessing Income tax officer to ask for the tax on the increased capital Whether we can capitalise the stamp duty paid on gifted building approx 30000/- (500000/- + 30000/- = 5,30,000/-) ? And whether depreciation shall be charged to this gifted property
16 September 2019
No possibility for the Assessing Income tax officer to ask for the tax on the increased capital due to gift from relative. You can capitalise stamp duty paid. Yes depreciation can be charged. Change the auditor who knows the provisions.
16 September 2019
actually the person who gave the gift has recd it as per will and accordingly that person too has recd the title as per will and original owner of that property has purchased the land on 1960 for Rs. 6000/- and constructed the building thereon. how much we capitalise ?
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