CAPITAL GAIN BASE ON NOTIFICATION
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08 September 2026
What is criteria for rural agriculture land based on 1994notification. Base year will be 1994 or in which year land sold
08 September 2026
According to various judicial precedents and CBDT clarifications, the relevant municipal boundaries for determining whether a property is rural agricultural land are those that existed on the date of the notification (January 6, 1994).
08 September 2026
Means we calculate distance from muncipal asper which census
08 September 2026
For sales occurring after April 1, 2013, the Income Tax Act was amended to globally replace city-specific notifications with a generic aerial distance-population rule.
Modern Criteria (Post-2013 Amendments)
If your sale falls under current laws where the older notification is superseded, the classification is purely mechanical based on the latest local census population data and aerial distance (measured as the crow flies):
Local Municipality Population .......... Land is Urban (Taxable) if within.......... Land is Rural (Exempt) if beyond..
.Up to 10,000........... Inside local limits only ....... Outside local limits
10,001 to 1,00,000..... ≤ 2 Kilometers ............ > 2 Kilometers
1,00,001 to 10,00,000 ...... ≤ 6 Kilometers ........... > 6 Kilometers
Modern Criteria (Post-2013 Amendments)
If your sale falls under current laws where the older notification is superseded, the classification is purely mechanical based on the latest local census population data and aerial distance (measured as the crow flies):
Local Municipality Population .......... Land is Urban (Taxable) if within.......... Land is Rural (Exempt) if beyond..
.Up to 10,000........... Inside local limits only ....... Outside local limits
10,001 to 1,00,000..... ≤ 2 Kilometers ............ > 2 Kilometers
1,00,001 to 10,00,000 ...... ≤ 6 Kilometers ........... > 6 Kilometers
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