Agriculture land sold to agricultural industry, Will it get capital gain tax or Income tax?

[Amit Kunjir]

Group of farmers have decided to sale 44acres of land to agri industry. This land is 8km away from city limits (aerial distance) and the population of village is less than 100000. Farming is carried out since 10years. Will they be liable for any tax as they sell the land to industry?

AI Summary

Farmers selling 44 acres may be exempt from capital gains tax due to population and location criteria. A group of farmers plans to sell 44 acres of agricultural land to an agricultural industry. The land is located 8 kilometers from city limits, with the village population under 100,000. The query discusses whether the sale would incur capital gains tax or income tax. One participant clarifies that the population is under 10,000 and the land is near Pune, Maharashtra. Another participant explains that agricultural land is generally not considered a capital asset if it is not within certain municipal limits or population thresholds, suggesting the land may be exempt from capital gains tax.