28 May 2014
SIR, I HAD SOLD A AGRICULTURE LAND SITUATED IN RURAL AREA, PANCHAYAT POPULATION 4000 BUT 2 KM FROM MUNICIPALITY LIMIT, THERE WAS A SMALL HOUSE SITUATED IN THE LAND WHAT WILL BE THE TAX POSITION 1. IF TAXABLE WHETHER INDEXATION APPLICABLE 2 I USED TO RESIDE THEIR AND DO FARMING ALSO 3 WHAT WIIL BE THE TAX POSITION
28 May 2014
Population is irrelevant for determining capital gains
Querist :
Anonymous
Querist :
Anonymous
(Querist)
29 May 2014
Section 2(14) of the Income Tax Act, 1961 defines Capital Asset. This section provides that capital asset does not include agricultural land in India. However, the following agricultural land are considered as capital asset:- (a) agricultural land situated within the jurisdiction of municipality or cantonment board and having a population of 10,000 or more (b) agricultural land situated within the following distance from the local limits of Municipality or Cantonment Board to be measured aerially.
29 May 2014
Distance of agricultural land from Municipality or Cantonment Board to be measured aerially Population of the Area Upto 2 kilometres Between 10,001 to 1,00,000 Upto 6 kilometres Between 1,00,001 to 10,00,000 Upto 8 kilometres Exceeding 10,00,000