Capital Gains tax on agricultural land

[NANDKUMAR SAGWEKAR]

Dear All learned readers and members of the site

I am having two  querry about capital gain tax  : -

1. The agricultural land owned by assesee and now he is selling to another party  for Rs. 18 Lakhs  the land is located within a village which is 4 kms. outside the boundry of muncipal  area . The date on which assessee become owner of land is 01-Mar-1970. The muncipality is not notified in the circular for limits of 8 kms / 5 kms , whether assessee is liable to pay the capital gain tax ?

2. The agricultural land owned by assesee and now he is selling to another party  for Rs. 48 Lakhs  the land is located within  the boundry of muncipal  area . The date on which assessee become owner of land is 26-July-1978. In this case how to find out fair market value of the land on 01-04-1981 for indexation purpose.

Thanks

 

A M SHEMBEKAR

AI Summary

Capital gains on agricultural land: proximity to municipal limits determines taxability; obtain distance and valuation evidence.
Capital gains on sale of agricultural land hinge on whether the land lies within the specified area around municipal limits under the income tax notification; a distance certificate from revenue authorities is required to establish taxability. For indexation, fair market value as of 01 04 1981 may be proved by a registered valuer's certificate or contemporary revenue records (Farad/Hakikat). Practical steps include obtaining the distance certificate and documentary valuation evidence, and considering replacement land purchase relief when statutory cultivation and time conditions are met.