gain on non-urban agricultural land

Exception 3 Agricultural land in India provided it is not situated—  

a. in any area within the territorial jurisdiction of a municipality or a cantonment board, having a population of 10,000 or more ; or  

b. in any notified area.

If it satisfies the above, capital gain is tax exempt

Sale of Rural agricultural land is not chargeable to capital gain tax. Even it is not chargeable to tax under any other head of income.

It is not taxable but pls refer to section 54B..... your question is not having complete details....

https://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/54b.asp

Yes, Transfer of Agriculture Rural Land is Exempt u/s 10(1)

Siddarth,

       Note one thing... Once the charging section of capital gains fails... Then the whole income is not at all taxable... So since the non agril land is not a capital asset and hence the charging sec 45 failed, the whole CG is exempted from tax........

it is exempt from capital gain tax

The only head that charges capital receipts to tax is "CAPITAL GAINS"  As it is evident that proceeds from sale of agricultural land is capital receipt and when it doesn't fall under the purview of capital gains revenue has no scope to charge under some other head..