Purchase of Land - Investment or Fixed Asset

[Bijay Shrestha]

For Knowledge purpose:

A company or Businessman purchased Land. Whether it can be shown as Fixed Assets or Investment ??

Please suggest.

Also From Income tax point of view, please suggest tax implication as far as classification as above is concerned.

AI Summary

Classifying Land: Fixed Asset or Investment? Depends on Use for Business Operations, Rental Income, or Future Value Appreciation. A discussion on whether land purchased by a company or businessman should be classified as a fixed asset or an investment. The classification depends on the land's intended use. If used for business operations such as plant development, it is a fixed asset. If used for agriculture or rented out for additional income, it may be considered an investment. Land held solely for future value appreciation is also regarded as an investment. The discussion also touches on similar scenarios for buildings, considering their use for business, rental income, or value appreciation. Tax implications vary based on classification.