gain on sale of land

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kumar (Querist)
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11 September 2008 sir,

book value of land is Rs.500000/-
that was sold for Rs.750000/-,
with in one year purchased another land for Rs.1500000/-

how do i shown in books of accounts as well as income tax.

kindly suggest me.

regards

Nirav Vora

Nirav Vora (Expert)
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12 September 2008 PASS NORMAL ACCOUNTING ENTRIES IN BOOKS OF ACCOUNT FOR PROFIT AS WELL AS SALE OF ASSETS.

FOR THE INCOME TAX PURPOSE THE GAIN ON SALE OF LAND CAN SET OFF AGAINST PURCHASE ON ANOTHER LAND WITHIN THREE YEARS UNDER SECTION 54 OF I.T. ACT.