Ltcg on rural agriculture land

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KitBot (Querist)
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05 April 2018 Hello,

Is it possible to know if a land situated 17Kms from nearest muncipal corporation limit with population of 4000 comes under rural agriculture lant?

Is there LTCG tax on the sale of such land?

Thanks,

Mohan

Nikhil Kaushik

Nikhil Kaushik (Expert)
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05 April 2018 best is to approach the local government office normally Zila Adhikari to get precise information on the distance and population. As long as the land is beyond the prescribed limits, no tax is payable

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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05 April 2018 Agricultural land in Rural Area in India is not considered a capital asset. Therefore any gains from its sale are not taxable under the head Capital Gains.

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

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