captial gain tax on argicultural land

Hello

I have just sold some agricultural land in Punjab. While it is out of the munipal limits it is within 8 km of the municipal limit. The village's radius itself is 4 km. The village does not appear in the govt of India's notification specifying areas/ villages following within notified muncipal limits.

Different lawyers have given us different opinions & the latest lawyer says there is no 8 km limit............according to him the rural land classifies as land outside of municipal limit or outside of any containment board with the population of X thousand.

Can someone please explain to me what is the latest criteria to assertain the rural land. I would appreciateif comeone can reply asap as I am very short of time. THanks.

Replies (1)

Ritu ji

In your question you have said

"The village's radius itself is 4 km. The village does not appear in the govt of India's notification specifying areas/ villages following within notified muncipal limits."

Please note in the notiication of the Govenment villages are notified.  Only Muncipal Corporations, Contonment Boards are notified.  You have to ascertain the distance of the village in which the agricultural lands are noted from the muncipal limits of the nearerst Municipality or Contonment Board if that Muncipa Corporation or Contonment Board is notified in the notfications.  I am hereunder givening the citations of the notifications.

Notification No.S.O.10/6-1-1994 -   205 ITR (St) 121

Notification No.S.O.77(E)/6-2-73  and amended by Notification No.S.O.1302/28-12-1999 - 248 ITR (St.)28

Please refer section 2(14) of Income-tax Act.

Best Wishes

Sathikonda

 

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