Please Help: Presentation of Profit & Loss
Posted Date : 20-Nov-2014 , 06:23:33 pm | Posted By: Pallavi Aggarwal
Category :
Corporate Law | Answers :
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One of my client earn profit on sale of land. Whether such profit is a part of Profit & Loss A/c or reserve as per revised companies act and whether such profit is subject to MAT |
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| Posted By : Sanjay Sharma |
21-Nov-2014, 01:57:59 |
| AS PER COMPANIES ACT, PROFIT ON SALE OF LAND IS CREDITED TO P&L A/C.
AS PER INCOME TAX, PROFIT ON SALE OF LAND IS COVERED UNDER CAPITAL GAIN AND THEREFORE DEBITED IN P&L A/C AND TAXABLE IN UNDER THE HEAD OF CAPITAL GAIN.
IN CASE OF AGRICULTURAL LAND : SUCH PROFIT IS COVERED IN MAT.AND MAT IS APPLICABLE FOR PROFIT ON SALE OF LAND.
IN CASE OF URBAN LAND : SUCH PROFIT IS NOT COVERED IN MAT.AND MAT IS NOT APPLICABLE FOR PROFIT ON SALE OF LAND. |
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