Capital gain on sale of land

Urban Agricultural land is a capital asset. Therefore gain arising on sale will be taxable.

Nikhil, if Agricultural Land is used for more than two years(whether Urban or Rural) for Agri. Purpose & Land is of a Long Term , Exemption can be availed accordingly u/s 54B / 54EC or under 54F, as per your decision. If you do not want to avail these exemptions, then you have to pay tax on the sale under LTCG, as per Indexation or Without Indexation as u choose.

Originally posted by : CA Manish Malu
	Urban Agricultural land is a capital asset. Therefore gain arising on sale will be taxable.