Agricultural land situated in India is not a capital asset, provided it is not situated........
(a) in any area within the territorial jurisdiction of the municipality or cantonment board having a population of 10,000 or more..... and
(b) in any area (within 8 kms from a municipality stated above) as specified by the Govt.
I am confused regarding the above provision : Please consider the following example ...
The agricultural land is situated in Rampur (village). Rampur falls in the disrict of Bharatnagar. Rampur is 5 kms from Bharatnagar. The population of Rampur is 5000 while population of Bharatnagar is 12000.
Can the above property (land) be said to be a capital asset?
CAclubindia
