This article explains about when an agriculture land will be considered as the capital asset. I already written article about the Capital Gains and Agriculture Land, it doesn’t explain much about the restrictions involved in finding the agriculture land is Capital asset or not?. This article main focus is to explain how you can decide if it will fall under the capital asset. Please post your comments after reading the article. If you like the article please subscribe it here.
When Agriculture Land is Capital Asset?
This section puts down few points to be consider while deciding whether a particular agriculture land is capital asset or not. Lets look into the key factors determining the capital asset.
- If the specified land is situated within the municipality limit which has the population of above 10000.
- If the specified land is situated with in 8 kms of the municipality limit.
- Any agriculture land situated in a village which is not comprised within a municipality or town area will not be treated as a capital asset.
- 10000 people includes the entire municipality. Not the single village.
I hope this article clears the doubts on how to determine the agriculture land whether it is rural or urban agriculture land. For learning about the capital gains on agriculture land read my previous article Capital Gains and Agriculture Land. If you have any doubts please post it in the comments section.
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