ASSESSEE CARRIES ON REAL ESTATE BUSINESS.LAND PURCHASED FOR RS 1000000. STAMP DUTY VALUE IS RS 11600000. WHAT AMOUNT WILL BE CONSIDERED WHILE MAKING THE PURCHASE ENTRY... 10,00,000 OR 1,16,00,000???
3 Replies
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(5128 Points)
Replied 05 March 2014
1,16,00.000/- value to be taken for account entries. cost of land add related expenses must be added.
Amit Kumar
(Chief Accounts Officer)
(183 Points)
Replied 05 March 2014
NOTE:
SECTION 50C IS APPLICABLE IN CASE OF SALE OF ASSET(BEING LAND OR BUILDING OR BOTH) AND NOT IN CASE OF PURCHASE OF ASSET. MOREOVER, EVEN IF IT IS SALE THEN ALSO ENTRY CAN NOT BE PASSED BY 1.6 CRORE.
PURCHASE A\C DR 10 LAKHS
TO BANK 10 LAKHS
(BEING LAND(STOCK FOR REAL ESTATE BUSINESS) PURCHASED)
Amit Kumar
(Chief Accounts Officer)
(183 Points)
Replied 05 March 2014
FURTHER MORE SECTION 50C IS NOT APPLICABLE ON STOCK, AS FOR REAL ESTATE BUSINESS LAND IS STOCK HENCE 50C HAS NO RELEVANCE HERE
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