The value of Residential Flat in BalanceSheet is value of Flat purchased in 1965. My client wants the Flat value as per current market price so the Balance Sheet will become heavyweight due to increased value of Asset and it will be good to get CC/OD from bank. No depreciation is shown for this Asset. Is it possible to put flat value in the BalanceSheet as per current price. Will this attract any Tax liability, pl advice guys.
2 Replies
ayusmita
(Tax consultant)
(5885 Points)
Replied 05 December 2020
No
even if the building market value increases over time its value on the balance sheet remain s always historical
and buildings are subject to depreciation or the periodic reduction of value in the assets that is expensed on the income statement and reduce net income.
even if the building market value increases over time its value on the balance sheet remain s always historical
and buildings are subject to depreciation or the periodic reduction of value in the assets that is expensed on the income statement and reduce net income.
JATINDER KUMAR
(Accountant)
(3662 Points)
Replied 06 December 2020
Agree with Ms. Ayusmita's reply
You can not show current value of Property in Balance Sheet
You can not show current value of Property in Balance Sheet
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