Capital gain on Sale of Agricultural land by non-farmer

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Sundeep Kandoi (Querist)
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20 October 2010 If a person who is not a farmer sells an Agricultural land, will the gain be taxed or will it be totally tax free?

Request to Experts, if possible please provide some references so that there is no confusion.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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20 October 2010 If the agriculture land sold in rural area as defined in section 2 as under

agricultural land in India, not being land situate—

(a) in any area which is comprised within the jurisdiction of a municipality41 (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population41 of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year ; or

(b) in any area within such distance, not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in item (a), as the Central Government may, having regard to the extent of, and scope for, urbanisation of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette42;]

If the land in sitauted in the above are then it is exempt from captial gains.

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