Agriculture land

[Mohammad Venu]

Sir,

I have sold an agriculture land at 25.05.017, that land was gifted by my grand mother at 30.04.2013, the land cited 16 km from district municipal area,

Now i don't know the land is exemption for income tax or not, if exemption is there any latest case laws or circular,

i hope can any one guide me right way,

Thanks

[KASTURI SETHI]

I am not expert in Income Tax Act but I know about this query.

See Section 2(14) (iii) of the Income Tax Act. this is with effect from 1.4.14

[(iii) agricultural land in India, not being land situate-

(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 47[***] ; or

48 [(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

[Ramesh Kothari]

In my opinion no income tax applicable if sold for purpose of further agriculture activities

AI Summary

Agricultural land exemption: sale likely exempt from income tax if land lies beyond municipal proximity distances. Agricultural land is exempt from income tax on sale only if it falls outside the statutory exclusions: land within municipal jurisdiction above prescribed population thresholds or land within specified aerial distances from municipal limits is excluded; land beyond those proximity limits retains agricultural-land character and is generally exempt, irrespective of prior gift or ownership history.