Revaluation of land and it on sale

Prateek (Top Management) (213 Points)

14 July 2012  

A land existed in the books of a company in 2003 for Rs. 20,000/- (Very old company very old land)

In 2004 the land was revalued by 2.5 Crore by adding to Land Value in Fixed Assets and same amount was shown as Capital Reserve.

In 2012 the land is now being sold for 3.4 Crore.

On what amount does the IT need to be paid ???