Exemption from capital gain

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Rahul Krishna Dey (Querist)

08 August 2013 Land situated in Rural area and this is a Agriculture land, then what's the section where I get deduction from capital gain.

Ganeshbabu K

Ganeshbabu K (Expert)

15 August 2013 No need of deduction because rural agricultural land situated in rural area in not a capital asset vide section 2(14),2(14(iii)

Thanks & regards
Ganesh babu k

Ganeshbabu K

Ganeshbabu K (Expert)

15 August 2013 Rural agriculture land means an agriculture land in India:

1)It situated in any area which is comprised within the jurisdiction of a municipality ( whether known as a municipality, municipal corporation, notified area committee, town committee or by any other name) and its population should be less than 10,000 as per the last published census, or

2)If situated outside the limit of municipality, etc., it should be situated certain kilometers away from the local limits of any municipality, etc. as may be specified by the Central government in the official Gazette.

3)The Central government can notified urban land upto maximum 8Kms from the limits of municipality, etc.Which are the Assets not Taxed under Capital Gain Head of Income Tax Act

4)Notification no. 9447 dated 06.01.1994 can be refered for more help in this regard.

Thanks & regards
Ganesh babu k

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