Capital gain on sale of converted agriculture land to non ag

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SUMIT JAIN (Querist)
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27 December 2012 dear sir,
in respect of the above subject suppose mr.x has agriculture land from last 40 years & now he sale the land after converted it into non agriculture land.
-sale price is rs.3,15,00,000(sale took place after development)
-agriculture land value is rs.2,00,000 before year 1981
-n.a made in year 2012
-n.a charges rs.10,00,000
-developing charges rs.1,00,00,000(in year 2012)
what is the capital gain & business income?what is tax planning for that?

Rupesh Jain

Rupesh Jain (Expert)
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03 January 2013 if you sell it as agriculture land (not in urban area) all profit will be tax free.

after development you may calculate business
income/capital gain after taking indexed cost of all exp.
whiche ever is beneficial for you