18 June 2012
Go through below mentioned definition of Agricultural Land. If it is within the vicinity of Municipality or within 8 KMs of Local Municipality or any notified area then Sale of Agriculture land will be Taxable either long term or short term depend upon the holding period of land by the assessee.
Section 2(14)(iii) in The Income- Tax Act, 1995 (iii) 5[ agricultural land in India, not being land situate- (a) in any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year; or (b) in any area within such distance, not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in item (a), as the Central Government may, having regard to the extent of, and scope for, urbanisation of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette;]
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