Determination of Cost of Acquisition
This query is : Resolved
09 September 2025
DEAR SIR,
ONE OF MY CLIENT ENTERED INTO JOINT DEVELOPMENT AGREEMENT IN THE YEAR OF 2020 FOR DEVELOPING AND CONVERTING INTORURAL AGRICULTURAL LAND TO NON AGRICULTURAL LAND. THE AGRI LAND WAS INHERITED PROPERTY. THE DEVELOPER DEVELOPED THE AGRI LAND AND TRANSFER TO MY CLIENT NAME IN THE YEAR OF 2022.
HE SOLD THE SITES IN THE YEAR OF 2024.
IN THIS SITUTION HOW TO DETERMINE COST OF ACQUISTION AND YEAR.
BEFORE 2020 OR 2022
THANK YOU SIR ,
REGARDS
ONE OF MY CLIENT ENTERED INTO JOINT DEVELOPMENT AGREEMENT IN THE YEAR OF 2020 FOR DEVELOPING AND CONVERTING INTORURAL AGRICULTURAL LAND TO NON AGRICULTURAL LAND. THE AGRI LAND WAS INHERITED PROPERTY. THE DEVELOPER DEVELOPED THE AGRI LAND AND TRANSFER TO MY CLIENT NAME IN THE YEAR OF 2022.
HE SOLD THE SITES IN THE YEAR OF 2024.
IN THIS SITUTION HOW TO DETERMINE COST OF ACQUISTION AND YEAR.
BEFORE 2020 OR 2022
THANK YOU SIR ,
REGARDS
09 September 2025
Whether possession was handed over to the developer?
Whether developer was paid his fees by part of land? or monetarily?
Whether developer was paid his fees by part of land? or monetarily?
09 September 2025
Thank you sir,
Developer paid 10lakhs Good will and they have devided sites 50:50 shares last year 10 sites were transferred to his name
Regards
Developer paid 10lakhs Good will and they have devided sites 50:50 shares last year 10 sites were transferred to his name
Regards
09 September 2025
This particular transfer will be seen with different angle. It will be considered sell of 50% land in 2022 in lieu of NA charges. Remaining part sold in 2024. The cost of acquisition remains that of original purchaser (for-father) or that 01.04.2001.
09 September 2025
Thank you sir,
cost of acquisition fore father means agriculture land before conversion.
cost of acquisition fore father means agriculture land before conversion.
10 September 2025
Purchase price of his for father or circle rate as on 2001, whichever higher.
10 September 2025
THANK YOU SIR,
BUT THE LAND SITUATED IN RURAL AREA STILL COMES UNDER LOCAL PANCHAYATH PERVIEW. SO BEFORE THE CONVERSION IT WAS PURELY AGRICULTURAL LAND.
1. I WAS THOUGHT THAT IT IS CORRECT OR NOT WHEN THE LAND TRANFERED TO MY CLIENT NAME AFTER CONVERSION THE CIRCLE RATE OR SR VALUE AS PER 2022. NOW THE CIRCLE RATE PER SITE IS RS.700000/- BUT THE SITE SOLD IN 2024 IS RS.1400000/-.
2. ONLY 10 SITE WERE TRANFERED TO MY CLIENT IN THE LAST YEAR
3.STILL NEARLY 30 SITES WILL BE TRF. TO MY CLIENT THIS CURRENT YEAR.
4. I THOUGHT BEFORE CONVERSION THE AGRI LAND IS NOT A CAPITAL ASSETS
THANK YOU SIR,
PLEASE SUGGEST ME I WERE WRONG IN OPINION
REGARDS
BUT THE LAND SITUATED IN RURAL AREA STILL COMES UNDER LOCAL PANCHAYATH PERVIEW. SO BEFORE THE CONVERSION IT WAS PURELY AGRICULTURAL LAND.
1. I WAS THOUGHT THAT IT IS CORRECT OR NOT WHEN THE LAND TRANFERED TO MY CLIENT NAME AFTER CONVERSION THE CIRCLE RATE OR SR VALUE AS PER 2022. NOW THE CIRCLE RATE PER SITE IS RS.700000/- BUT THE SITE SOLD IN 2024 IS RS.1400000/-.
2. ONLY 10 SITE WERE TRANFERED TO MY CLIENT IN THE LAST YEAR
3.STILL NEARLY 30 SITES WILL BE TRF. TO MY CLIENT THIS CURRENT YEAR.
4. I THOUGHT BEFORE CONVERSION THE AGRI LAND IS NOT A CAPITAL ASSETS
THANK YOU SIR,
PLEASE SUGGEST ME I WERE WRONG IN OPINION
REGARDS
10 September 2025
Whether sell deed was registered in 2022? How can you call it transferred in 2022?
10 September 2025
SORRY THANK YOU SIR,
IN YEAR OF 2001 THE SR VALUE OF THE CONVERSION LAND TO BE CONSIDERED TO CALCULATE COST OF ACQUISTION.
THANK YOU
IN YEAR OF 2001 THE SR VALUE OF THE CONVERSION LAND TO BE CONSIDERED TO CALCULATE COST OF ACQUISTION.
THANK YOU
10 September 2025
No. That of agricultural land.
Conversion happened in 2022. You can add the cost as 'cost of improvement' in 2022.
Conversion happened in 2022. You can add the cost as 'cost of improvement' in 2022.
20 September 2025
Good Luck..
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