Tax in Property Sale

Ignesius (Student) (62 Points)

12 June 2011  

Sir

My grandfather (aged more than 70 years) is selling his agriculture land in the village, The village is about  8 KM from main town (municipal).  He wants to deposit this amount in a bank and planning to live on the interest from it.  Does our IT rules allow such an action ?.  Does this sale value attract long term capital gain tax of 20% ?.  Please clarify

My mail: ignesiust @ yahoo.com

Thanks - Ignesius