Tax in case of sale of ancestral agricultural property

Querist : Anonymous (Querist) 14 December 2009 This query is : Resolved
I am selling agricultural land which belongs to my grand mother.
Whether the sale amount will be taxable under capital gain tax or any other tax. I have heard that the population of the village in which the said land is situated is less than 4000. This is the information which I have collected from the websites. Also the rule regarding 8 km from the corporation area, whether it is only the municipal corporation or also municipal council.

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S.KARUNAMOORTHY (Expert) 14 December 2009
It is only municipal corporation.

aman kumar (Expert) 14 December 2009
yes you shuld pay capital gain tax on it !it is corporation

Vineet (Expert) 14 December 2009
For an Agricultural Land to fall within the definition of Capital Asset (for the purpose of charging Capital Gains):
1. It should be situated within the jurisdiction or within a dstance of 8 kms from local limits of a Municipality (Whether called as Municipality, Municipal Corporation, Notified area committee, town area committee or by any other name) or a cantonment board;
AND
2. Such Municipality or Cantonment Board should have population not less than ten thousand.

Considering the facts of your case, no capital gains tax shall be charged on transfer of your land.

Raj Kumar Makkad (Expert) 14 December 2009
No capital tax is payble in your case.

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