https://www.taxtmi.com/forum/issue?id=3445 Sale of rural agricultural land located about ten kilometres from a municipal area is generally not a capital asset and thus not taxable as capital gains if the land was agricultural and used as such; the taxpayer must establish rural location and agricultural use. If the assessing officer considers the land part of a development or conversion for sale, gains may be taxed as business income at normal rates. Exempt amounts should be shown accordingly; if taxable as capital gains, compute long term capital gains using a fair market value benchmark and cost inflation indexation. en-us Mon, 26 Sep 2011 10:21:05 +0530 Thu, 23 Jan 2025 15:58:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=3445 Sale of rural agricultural land located about ten kilometres from a municipal area is generally not a capital asset and thus not taxable as capital gains if the land was agricultural and used as such; the taxpayer must establish rural location and agricultural use. If the assessing officer considers the land part of a development or conversion for sale, gains may be taxed as business income at normal rates. Exempt amounts should be shown accordingly; if taxable as capital gains, compute long term capital gains using a fair market value benchmark and cost inflation indexation. Discussion-Forum Income Tax Mon, 26 Sep 2011 10:21:05 +0530 https://www.taxtmi.com/forum/issue?id=3445