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
PRAVEEN KUMAR
(MBA (Finance) B.Com.(P))
(3443 Points)
Replied 21 September 2009
Yes, LTCG will be prior period income, it is good that company wish to disclose it.
Just calculate the tax and interest thereon and deposit the same. and disclose in the notes to accounts & auditors report of the current years. i think there will be no problem.
Thanks
Praveen
CAclubindia
