10 August 2010
YES, Capital Gain generated on rural agriculture land is Exempt, becouse rural agriculture land is not a capital assets for the purpose of capital gain under income tax act.
10 August 2010
If agricultural land in India, in situated —
(a) in any area which is comprised within the jurisdiction of a municipality41 (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 population41 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 Gazette42;]
gain on sale is exempt as the same is not covered in the defination of capital asset.
CAclubindia
