Computation of capital gain

It is a capital asset because the land is located within 8km of municipality.

The cost of acquisition shall be the market value of the land in the year in which the land was transferred to the father. 

I am not sure about the Kul Kyada scheme, but you should be able to determine the market value of the land in the year your father became the owner.

Wait for more replies.

municipal limits vary for diffrent municipal areas. so first of all check the applicable municipal limit for your area. it may be possible that it will covered under agriculture land. year of acquisition will be the year in which your client received it from his father, which you did not mention in your query. cost of auquisition will be cost on 01/04/1981 if purchased before than this date or the purchase cost if purchased after 01/04/1981 as the case may be.

hope my reply will be helpful to you.

TNX SIR I WANT MORE INFORMATION ABOUT COMPUTATION OF CAPITAL GAIN

Yes this true that every municipal limits vary for different municipal areas. So first of all check the applicable municipal limit for your area. It may be possible that it will covered under agriculture land. 

The cost of acquisition of the asset shall be the cost for which the previous owner of the property acquired it, as increased by the cost of any improvement of the asset incurred or borne by the previous owner or the assessee, as the case may be, till the date of acquisition of the asset by the assessee.

Where the cost of acquisition is to be taken as the cost to the previous owner, the period of holding by the previous owner should also be considered.