Capital gain liability on sale of agricultural land

This query is : Resolved

yogesh vijaykumar shah (Querist)
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10 March 2013 Kindly advise us along with section and case law whether the capital gain tax liability attracts on sale of agricultural land by an individual which is situated within the radius of 8 Kms from Municipal corporation.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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10 March 2013 Yogesh Ji,

Since the land under consideration is within 8 km radius of the municipal corporation, capital gains arising out of sale of such land shall not be exempt as the said land, by definition, is not an agricultural land.

The relevant sections are 2(1A.

However, you may seek exemption under 54B for the capital gains in case of agricultural land situated within 8 kms of the municipal corporation limit.

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