Whether rural agricultural land

This query is : Resolved

ARPAN (Querist)
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12 August 2008 In Vadodara city,whether agricultural land under Vadodara Urban Development Authority(VUDA) is consider as rural agricultural land.
This important because an agricultural land is sold and if it would be rural than it will be ouside scope of definition of capital asset

CA Naveen Kumar Agrawal

CA Naveen Kumar Agrawal (Expert)
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14 August 2008 Rural agricultural land is not a capital asset hence there is no ques of arising capital gain on transfer of such asset. Rural Agricultural Land: Agri. Land in India provided it is situated in area outside the jurisdiction of a municipality or a cantonment board having a population less than 10000(as per last Census)
Agricultural Land: Land being used by an individual or his parents for agricultural purpose for a period of two years, immediately preceding the date of transfer.