Please Help: Presentation of Profit & Loss
Posted Date : 20-Nov-2014 , 06:23:33 pm | Posted By Pallavi Aggarwal
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
Category : Corporate Law | Answers : 0 | Comments : 2 | Hits : 349
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Sanjay Sharma
21-Nov-2014 , 01:41:28 pmSanjay Sharma
21-Nov-2014 , 01:57:59 pmAS 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.