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Capital gains under agriculture land

ramesh agrawal (business) (179 Points)

15 September 2012

I want to sell a agriculture land purchased 5 years ago . Will I have to pay LTCG on profit after indexing ? The land is situated within 2 Km of our municipal limit.

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2 Replies

khushboo (CA Final) (53 Points)
Replied 15 September 2012

Agricultural Land is not a captial asset under the defination of capital assets....Urban Land is a capital asset provided it falls under the jurisdiction of muncipalty , muncipal corporation, notified area committe or town area committe or cantonment board having a population of 10000 or more of which the relevant figures hv been published as per the last preceding census or situated within 8 kms of muncipality etc refered above if specified by the central govt given by notification in this behalf......if these conditions are fulfilled and as u hv said its situated within 2kms ....it will b a capital assest subject to LTCG....however it not shld be a transfer by way of complusary acquistion by govt....see section 10(47).....if it falls under 10(47) its exempted....