Capital gains on sale of industrial zone land

The COA would be the original cost in 2012 and shall be indexed.

If any charges were paid for conversion to industrial zone, same can be indexed and claimed as cost of improvement.

The current nature of the land shall be taken into consideration. COA shall be original cost.

There is a ruling that if agricultural land is later converted to industrial land it will not become capital asset.

Hi

For the calculation of capital gain original cost in 2012 will be taken.once it converted as industrial estate it will be considered as industrial.  Thereafter no benefit of agriculture lands. Expenses related to convertion will from part of cost of improvement.

Calculation of long term capital is sales consideration less cost of transfer less indexed cost of acquisition less indexed cost of improvement.

For detail discussion please have a phone consultation.

If there is a sale of agricultural land after its conversion from agricultural land then in that case capital gain would be sale consideration less FMV of non agricultural land on date of conversion.

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Dear Sir,

Hope you are doing well !!

The cost would be FMV of agricultural land in 2018.

Yes, your understanding is correct.

Hi

It will be treated as non agriculture land

Please have a phone consultation for detail discussion