i bought the agricultural land of 3 Acres by paying Rs.7,50,000 in the year 1990.
i got converted the land to residential usage in the year 2003.
now i am selling the land for Rs.20 crores.
how the same has to be treated for capital gains?
other informations:
1. Guidance/government value of agricultural land as on 01.04.2001 is Rs.10,00,000
2. Market value of agricultiral land as on 01.04.2001 Rs.1 crore
3. Cost of converted land as on 01.04.2001 Rs.200 per SFT.
Take Guidance value as of 01.04.2001 as cost of acquisition.
Take actual expenditures as of FY 2003-04, as cost of improvement.
Calculate the indexed costs as of the year 2021-22, to arrive at LTCG.
Thank you sir, but on 01-04-2001, the asset was not capital asset as it was agriculture land.
That's true, but it had some value, as per Govt. Guidance. What you are selling is converted land, not the same.
CAclubindia
