Agriculture Land
This query is : Resolved
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??????
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??????
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.
But keep all the costs involved in conversion well documented. This may qualify as costs of improvement.
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
If you sell it as agri land, LTCG is applicable
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