Rural Agricultural land is exempt from tax.

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Ritik Jain

Ritik Jain (Querist)
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20 August 2021 How to find out whether agricultural land is fall in less than 6 or 8 KM of the municipality area??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 August 2021 Measure it through approach road from municipal limit.
Measurement of Distance to determine if agricultural land is situated within 8 km of municipal limits
Delhi High Court held in the case of CIT vs. Vijay Singh Kadan that to determine whether the agricultural land is situated within 8 km of the municipal limits so as to constitute a capital asset, the distance has to be measured in terms of the approach road and not by the straight line distance on horizontal plane or as per crow's flight.

Brief of the case- Delhi High Court held in the case of CIT vs. Vijay Singh Kadan that to determine whether the “agricultural land” is situated within 8 km of the municipal limits so as to constitute a “capital asset”, the distance has to be measured in terms of the approach road and not by the straight line distance on horizontal plane or as per crow’s flight.