Exempt of proceeds from sale of Agriculture Land from Capital Gains.

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  1. Suraj Gudala

    Suraj Gudala New Member

    Hi.

    Following are my doubts....

    1.Does Agricultural Land is a Capital Asset? ( as per 2(14) of IT Act, I understood it's not. Correct me if wrong)

    2.As per 2(14),
    To consider as Agricultural Land, it has to satisfy some conditions, few of them is distance and population from Register Office and that to aerially and 2011 census respectively.

    My question is does any one has to certify the above conditions.

    If so, What is the Name of such Certificate and Who will Certify and What is the Procedure?

    Any info will be appreciated.

    Thanks in advance.
     
  2. ZED

    ZED Well-Known Member

    An urban agricultural land is a capital asset but a rural agricultural land is excluded from the the definition of capital asset.



    An agricultural land is a capital asset if it is situated -;

    (a) in any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population of not less than ten thousand; or


    (b) in any area within the distance, measured aerially,—

    (I) not being more than two kilometres, from the local limits of any municipality or cantonment board referred to in item (a) and which has a population of more than ten thousand but not exceeding one lakh; or

    (II) not being more than six kilometres, from the local limits of any municipality or cantonment board referred to in item (a) and which has a population of more than one lakh but not exceeding ten lakh; or

    (III) not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in item (a) and which has a population of more than ten lakh.

    Explanation.—For the purposes of this sub-clause, "population" means the population according to the last preceding census of which the relevant figures have been published before the first day of the previous year;
     
  3. Suraj Gudala

    Suraj Gudala New Member

    Thanks again.

    Does any one has to certify, the aerial distance and If so, What is the Name of such Certificate and Who will Certify and What is the Procedure?
     
  4. ZED

    ZED Well-Known Member

    No, it is not to be certified.
    You should maintain proof with yourself. Check for the census data.
     
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