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Tax on agriculture land

Alkesh Patel (Asst. Manager ( Finace)) (7 Points)

14 November 2016

Dear Sir My uncle sold an agriculture Land to a private Ltd co. and this land is situated 25 kms fare from vadodara . Does Any Income Tax or Capital Gain Tax applicability levies on it. Please guide me. Thanks

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185376 Points)
Replied 14 November 2016

Check whether its rural or urban land, and decide.

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Vatsal (Student) (453 Points)
Replied 14 November 2016

If its rural agricultural land than no tax as it is not a capital asset

Alkesh Patel (Asst. Manager ( Finace)) (7 Points)
Replied 15 November 2016

Sir

It is Rural Area ( Which 25 Km fare from Vadodara City)

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185376 Points)
Replied 15 November 2016

Check as per income tax criiteria as follows:

Definition of Rural Area – from AY 2014-15 – Any area which is outside the jurisdiction of a municipality or cantonment board having a population of 10,000 or more is considered Rural Area, if it does not fall within distance(to be measured aerially) given below – (population is as per the last census)

2kms from local limit of municipality or cantonment board	If the population of the municipality/cantonment board is more than 10,000 but not more than 1lakh
6kms from local limit of municipality or cantonment board	If the population of the municipality/cantonment board is more than 1lakh but not more than 10 lakh
8kms from local limit of municipality or cantonment board	If the population of the municipality/cantonment board is more than 10lakh