Valuation of plantation agricultural land prescribes income-capitalisation and market methods for wealth-tax valuation of specified plantations. Guidelines classify plantation land into yielding, developing/non-yielding, and other virgin/unplanted categories. Yielding land is valued by the income capitalization method: average six years' gross income less average expenditures (with a 5% self-management allowance if applicable), specified expenditure items excluded, an ad hoc 25% deduction from net annual income, then capitalised using a multiplier of six. Developing land is valued as improvement cost plus market value of virgin land. Other lands are valued at market value, considering Board-recommended development-loan values.
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Valuation of plantation agricultural land prescribes income-capitalisation and market methods for wealth-tax valuation of specified plantations.
Guidelines classify plantation land into yielding, developing/non-yielding, and other virgin/unplanted categories. Yielding land is valued by the income capitalization method: average six years' gross income less average expenditures (with a 5% self-management allowance if applicable), specified expenditure items excluded, an ad hoc 25% deduction from net annual income, then capitalised using a multiplier of six. Developing land is valued as improvement cost plus market value of virgin land. Other lands are valued at market value, considering Board-recommended development-loan values.
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