Entry of Flat Sales

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2010 if i have a flat of rs.225000 90-91 & I sale it for rs. 14 lacs & invested in rural capital gain bonds in that sales month...of rs. 850000/- (8.5 lacs) and Rs.425000/- (4.25 lacs) given to my daughter in law.
pls tell me about accounts entry & also taxation related solution.

thanks in advance

VINOD ARORA

VINOD ARORA (Expert)
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02 August 2010 Accounting entry may be passed by debiting bank account (14 Lac) and crediting asset account (2.25 lac) / profit on sale of assets (11.75 lac). Profit may be shown as credit to P&L A/c or in the case of individual directly added to capital account.

Further accounting entry relating investments and loan/gift to daughter in law also may be made appropriately,by crediting bank account.

In view of indexed cost of aqui. arriving at Rs.7.81 lac in 2009-10, capital gain amt is Rs.6.19 lac, which is sufficiently covered by investment in cap gain bonds. so no tax liability arises.

Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2010 Pls explain the calcution sir,

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