Firstly, an agriculture land earlier didn't come under any notified area nor within eight kms of a municipal area( there was a gram panchayat in that area). After some time(when this so called rural agricultural land was converted into industrial land), municipality came into existence in that area... will this agricultural land be considered as urban since begining???
Secondly, a rural agricultural land purchased in 2009 was converted into an industrial land in 2013 and later in 2014 converted into stock in trade.what will be the tax liability??
in my opinion for the second question, since 2014, trading profits will be sale consideration minus FMV on the date of conversion and,
capital gains would be FMV on the date of conversion into stock in trade minus fmv on the date of conversion into an industrial land.
Pls correct me if Iam wrong. Urgent replies will be appreciated and thanx in advance.
CAclubindia
