Fixed assets

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2015 sir

A plot worth 120000/-was purchased few years back .Now a house is built worth 200000/- .Can additions be shown to plot under fixed asset? Or house should be shown separately shown under fixed asset?

Thanks in advance

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
Follow

05 August 2015 After construction since plot has changed into house it has changed its identity therefore house should be shown with value Rs. 320000/-. You can show plot worth Rs. 120000/- and construction worth Rs. 200000/- under house head. This will be more appropriate from the point of view of capital gains calculation if sold in future.

Message likes : 1 times