05 December 2013
dear experts request to please elaborate on :land situated in any area around the above referred bodies upto a distance of 8 kilometers from the local limits of such bodies
05 December 2013
Section 2(14) of the income tax act defines a capital assets and excludes from its ambit agricultural land situated within the jurisdiction of a municpality or cantonment board having population according to last published census of less then 10000 it also excludes agricultural land beyond such specified distance (not exceeding 8 kms) from the local limits of a municipality or cantonment board as notified having population of not less then 10000
the section is amended and rationalised to provide that the agricultural land situated in any area outside the distance, measured aerially, of
1. more then 2 kms from the local limits of any muncipality or cantonment board having a population of more then 10,000 but not exceeding 1,00,000 or
2. more then 6 kms from the local limits of any muncipality or cantonment board having a population of more then 1,00,000 but not exceeding 10,00,000 or
3. more then 8 kms from the local limits of any muncipality or cantonment board having a population of more then 10,00,000;
shall be excluded from the defination of capital assets and hence will be exempt from capital gains tax on its transfer. however agricultural land falling within the above area will be treated as a capital assets and accordingly be chargeable to capital gain tax.
CAclubindia
