capital gain on sale of agricultural land

Dear sirs, One of our client a farmer , had 2 acres of agricultural land. the agricultural land is situated in a panchayath area out side the muncipal limits of 8 Km from municipality . He sold that property on December 2008 for Rs.1.5 crores. In the sale deed it was mentioned that the entire sale consideration is received by him. But actualy he received only 50 lakhs in the year 2008-09. The buyer excuted an agreement says that he cannot paid the whole amount the seller have right in the said property up to the time when he given the full amount. That agreement was not registered any where. During the year 2009-10 he received the balance amount from the buyer. during 2009-10 he started constructing a home and he spended Rs. 50 lakhs for that and he invested Rs. 30 lakhs in share trading business. the rest amount is with in his bank account. The property he got from his ansisters. My doubt is , whether the sale of agricultural land  coming under the net of capital gain . whether the land is excluded from the definition capital asset. How he can disclose the deals in his return of income during the A.Y 2009-10 and A.Y. 10-11.