Regarding Sale of Agriculture Land

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A discussion regarding the sale of agricultural land where the sale deed classifies it as rural, but its proximity to municipal limits raises questions about capital gains tax. Colleagues are seeking guidance on how to correctly file the Income Tax Return (ITR), particularly concerning the applicability of TDS under Section 194IA and how to officially determine the distance from municipal limits for tax assessment purposes.

Jaswinder singh

Jaswinder singh (Querist)

30 July 2025 Respected Colleagues,
A person sold his agriculture land and wants to file a ITR now, but the point is, In Sale deed type of land is Rural agriculture land but the land is situated 3 Kms within MC Limits and TDS 1% 194IA also deducted by builder,
Now my question is if we considered sale deed then its a rural agri. land but TDS 1% deducted and also near MC Limits

Please guide what i do in ITR

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

31 July 2025 It's not a rural agricultural land as it's near municipal limits capital gains tax applicable.

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Jaswinder singh

Jaswinder singh (Querist)

08 August 2025 Thank you so much sir for your valuable reply.
but one thing i want to know, how can i can assess the distance (aeriel) of agriculture land from MC Limits, Is there any dept should issue a document for this or jurisditional tehsil or SDM office? Please guide for proper document ....Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 August 2025 Use Google map to find the distance which will be acceptable to income tax.

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