Hi..,
One of my friend is into the business of land developing..., he had 1 acre of ancestral rural agricultural land and he has converted the said land into sites and FMV of 40 lakh has been considered in the books of accounts and Cost of acquisition of preveous owner is Rs.3.5 Lakh.., does the above transaction governed by provisions of Capital gains...,
In my opinion rural agricultural land is not a capital asset, so we are not suppose to caculate the CG..., if Iam wrong please suggest me the correct procedure....,
CAclubindia
