13 December 2011
Dear Experts Namaskar, My query is regarding agriculture land, if agriculture land is situated 10 km away from the Municipality area, what will be the position of capital gain and the amount received on sale of land can be invested in business as capital.
13 December 2011
RURAL AGRICULTURE LAND NOT CAPITAL ASSET...CAPITAL GAINS ON TRANSFER OF RURAL AGRICULTURE LAND WILL BE EXEMPT.
Defination of Rural Agricultural land in India other than the following:
i) Land situated in any area within the jurisdiction of municipality, municipal corporation, notified area committee, town area committee, town committee, or a cantonment board which has a population of not less than 10,000 according to the figures published before the first day of the previous year based on the last preceding census.
ii) Land situated in any area around the above referred bodies upto a distance of 8 kilometers from the local limits of such bodies as notified by the Central Government.
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