Capital gain on inherited property

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Querist : Anonymous

Querist : Anonymous (Querist)

19 December 2011 income tax on capital gain of inherited agricalture land. i do not know the muncipal limit in which it fall. if exempted than under which section of income tax act.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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19 December 2011 Section 2

36(14) “capital asset” means property37 of any kind held by an assessee, whether or not connected with his business or profession, but does not include—

[(iii) agricultural land41 in India, not being land situate—

(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;]

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