Sir, Request your suggestion on the following:
A Credit Society receives a Immovable Property in the form of Gift-Deed from it's member. Society gets the property registered in it's name by paying full market value stamp-duty, registration, etc... The property was declared in the assets heads of Balance Sheet with value of Rs.39L. (Society did not pay any amount for the Gifted Property)
To balance the Rs.39L shows in the assets section, Rs.29L was shows as addition to reserve fund and balance amount of Rs.10L shown as payment of Income-Tax as per the Income-Tax act.
How correct is this declaration in the BS. Is it as per Audit Recommended practice? How does this reflect in the IT filing.
Thanks Much. Gopalaiah
CAclubindia
