Agriculture Land

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CA Keyur Shah (Querist)
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29 December 2009 My client has a agricul.land. The value cant be ascertained bcoz it was purchased by fore-fathers.
it is 4851 sq. mtr.The market value of land as on 1/4/1961 is around Rs. 40/- per sq. mtr.
The value of this land as on today is Rs. 2400/- per sq. mtr.
Bt my client wants to convert same into non agri. land.
Then the value of this land is Rs. 6000/- per sq. mtr.
Then sold to the another party.

Wht will be Tax implications for this transcations??????

Bhavesh

Bhavesh (Expert)
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29 December 2009 converting from agri to non-agri has no tax issues as it is not transfer.

But keep all the costs involved in conversion well documented. This may qualify as costs of improvement.

Bhavesh

Bhavesh (Expert)
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29 December 2009 But if possible sell the land as agri land only. Then no tax payable.

If you sell it as agri land, LTCG is applicable

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