santhosh (CA) (636 Points)
21 September 2009Hi all Pls solve this Case!
M/s XYZ P (ltd) has sold some acres of Land that was purchased some 15 years before. Now the sale was done in FY 2005-06. But the Company By Omission did not disclose/account this ( Either in the Books nor in the Return of Income).
Now they want to disclose/account this now and pay LTCG tax on this.What are the Ramifiactions on the taxation side. Also tell me how to account this books in FY 2008-09. Whether this is a Prior period item or not?
Urgent Pls Guide!
Thanks
Chetan D.
(Management Accountant)
(89 Points)
Replied 21 September 2009
Santosh,
Fixed assets sale will be brought in the books as usual. Only the component of profit and sale will be accounted in PRior Period Items.
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