Capital gains under agriculture land

I want to sell a agriculture land purchased 5 years ago . Will I have to pay LTCG on profit after indexing ? The land is situated within 2 Km of our municipal limit.
Replies (2)

Agricultural Land is not a captial asset under the defination of capital assets....Urban Land is a capital asset provided it falls under the jurisdiction of muncipalty , muncipal corporation, notified area committe or town area committe or cantonment board having a population of 10000 or more of which the relevant figures hv been published as per the last preceding census or situated within 8 kms of muncipality etc refered above if specified by the central govt given by notification in this behalf......if these conditions are fulfilled and as u hv said its situated within 2kms ....it will b a capital assest subject to LTCG....however it  not shld be a transfer by way of complusary acquistion by govt....see section 10(47).....if it falls under 10(47) its exempted....

Ramesh, Yes Tax will have to be paid. But you can avail exemption by Buying NHAI/REC Bonds, or Investing in Residential Property or another land.

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