Hello,
Usually, Properties and Jewellery are shown at Cost in the case of an individual while filing Balance Sheet under ITR-4. But is there any chance we could show this at revalued figures to reflect Fair Market Value?
yashsr (CA) (2285 Points)
16 March 2012Hello,
Usually, Properties and Jewellery are shown at Cost in the case of an individual while filing Balance Sheet under ITR-4. But is there any chance we could show this at revalued figures to reflect Fair Market Value?
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 16 March 2012
If the Market Value of these assets it very hihg as compared to the cost at whihc they were acquired, then in such case the FMV of teh asset may be taken.
yashsr
(CA)
(2285 Points)
Replied 16 March 2012
I guess what you're telling is as per Accounting Standards. If at all there is an enquiry/scrutiny from the AO, and there is no valuation to support it, can the assessee be in trouble?
Should a valuation be done in such a case?
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 16 March 2012
In such case the dept will ask an valuation officer to make a valuation of the asset & accordingly the same would be offered for taxation.
But it would be wise if you make a valuation from a valuation officer, so that it would be a true evidence.
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