ONE OF MY CLIENT WANTS TO BRING INTO THE CASH OF RS. 5.0 LACS INTO HIS CAPITAL ACCOUNT BY WAY OF SHARE OF SALE PROCEEDS FROM HIS ANCESTRAL PROPERTIES HE RECIVED DURING THIS YEAR . THAT ASSET NOT IN HIS BALACE SHEET BECAUSE OF ANCESTRAL NATURE . ADVISE ME WHETHER HE CAN ABLE TO CREDIT HIS CAPITAL ACCOUNT . IF HE CAN DO SO WHAT IS THE PROCEDURE.
REGARDS.
S.KUMAR
He can do so . when in course of scrutny question will be asked by AO he has to show the details like transferdeed of property . and proof that the property owner was his relative and he and others have distributed the sale amount in agreed ratio.
In respect of ancestral property he should compute the Capital Gains/Losses in respect to his share and show the same in his return. He can credit the proceeds to his Capital Account then.
Agree with Mr.Paras
Regd
Lovenish Bansal
CAclubindia
