23 June 2008
Mr.A purchased agricultural land during Dec-2005 and declared income from Agriculture land in his return of Income for rate purpose. Agriculture Land is situated in a village, which is beyound 8 K.M from municipal limit and population is less than 10,000.
Whether sale of above agriculture land during July 2008 will attract short term Capital Gain Tax.
24 June 2008
agricultural land situated out of the municipal jurisdication and having population of less than 10,000 is not a capital asset for income tax purpose and hence no capital gain on its tranfer.
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