Land Filing

It is assume that after incurring expenses on land for filling work on all over the land the earning capacity of land increases, so the expenses incurred is capital expenditure. Also, all cost which are incurred on asset before the asset is put to use should be capitalised, hence the same expenses should be included in cost of land.

I Support niket's View

Hi Sorabh,

For valuing the land for business and profession purpose the cost of filling up will be capitalised but on sale of this capital assets the cost of fill up shall be treated as cost of improvement.

Yes, it would be treated as cost of Improvement of Land for Capital Gain Purposes...