Definition of Urban area under Capital Gains

Soyson Joseph Thonakkara (Financial Analyst) (23 Points)

05 February 2018  
It says, any area (Municipality, Municipal Corporation etc.) which is having a population of above 10k is treated as an urban area.

Does that mean even a Gram Panchayat which is having a population greater than 10k will fall under Urban? Essentially, is that only the 'population' of a local body determines the Urban status?