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RURAL AGRICULTURAL LAND CAPITAL GAIN EXEMPTION CRITERIA

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This query is : Resolved

Suresh S. Tejwani (Querist)

08 June 2026 To check if a property qualifies as exempt rural agricultural land under Section 2(14), how do we measure the 2/6/8 km distance? If the land is located near a Municipal Corporation, a Gram Panchayat, and a local authority like JADA, which boundary's population criteria determines the tax exemption?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

08 June 2026 To qualify as an exempt rural asset, the land must be located outside the statutory limits of a municipality/corporation and must exceed the aerial (straight-line) distance thresholds of 2 km, 6 km, or 8 km, which are determined based on whether the adjacent municipality's population exceeds 10k, 1 lakh, or 10 lakhs respectively. The distance must be calculated from the boundary of the Municipal Corporation, not regional development bodies like JADA, and if the land falls within these radiant limits of a city, it will be categorized as taxable urban land regardless of its placement inside a local Gram Panchayat.

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