| Question And Answer | |
|---|---|
| Subject: | Query on COA of Land |
| Category: | Income-Tax |
| Querist: | Vijay Vishwakarma |
| Answered by: | Law Intern |
| Tags: | Capital Gains, conversion of land, cost of acquisition |
| Date: | May 16, 2025 |
A has purchased Agri land for Rs.10 Lakhs in the year 2000. In FY 2023-24 A has converted this Agri Land to NA land for selling them in various plots. Valuation of the land on the date of conversion was Rs.100 Lakhs.
All plots have been sold in FY 2024-25 for Rs.300 lakhs.
Now query is, whether A can claim Rs.100 lakhs i.e. value as on date on conversion as a cost of land against sale of Rs.300 lakhs?
If yes then any supportive section.
If no then any other alternatives?
No. As the conversion of the land is not a taxable event, the FMV on that date cannot be treated as the cost of acquisition.
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