Sirs
My client, a partnership firm involved in real estate development had bought a agricultural land in 2005, about 50 kms away from the municipality and in an area with surrounding 8 km radius, population lower than 10000 as per census 2001. The firm is selling the Agricultural Land now, in 2009 after 4 years. The property is still an Agricultural Land and my client has been doing Agricultural activities on the said land, and generating nominal agricultural income every year.
Is the capital gain on the sale of such agricultural taxed under the head Capital Gain Tax? Reply at the earliest...