types of improvement on agricultural land.

[alam singh]

i wanted to know what type of improvements (cost of improvement) can be deducted in case of long term capital gains on sale of urban agricultural land. any sugestions ,please.

[CA Rachit Agarwal]

Cost of excavation, levelling, filling, boundary wall are examples of cost of improvement.

[alam singh]

rachit ji,thanks.now suppose a healthy orchard with fruit bearing plants is sold within urban , can any more deductions be made ?

AI Summary

Cost of improvement deductions for urban agricultural land sales may include excavation, levelling, filling and boundary walls. Whether expenditures on physical enhancements to agricultural land qualify as deductible cost of improvement against long term capital gains on sale of urban agricultural land. Examples include excavation, levelling, filling and construction of boundary walls. The query also asks whether sale of a developed orchard with fruit bearing plants in an urban area permits additional deductions beyond identified land improvement costs.