Definition of Urban area under Capital Gains

a rural land shall be considered urban land

If rural area is within distance of 2kms from limits of urban area having population 10k+ but not more than 1L
if rural is within 6kms from urban having population 1L + but less than 10L
if rural is within 8kms from urban having population 10L +

so simply any area within distance of 8 km from delhi is urban area ( as population is 10L+)

So i believe that population of that gram panchayat is irrelevant, but population of nearby urban areas should be checked

You are right, Mohit. The point I wanted clarify is whether the population is the only factor irrespective of the Local Body Status. You clarified it, Thank you!