Agriculture Land Sale IS Tax Free! But Check if it is really Agriculture Land.

We had ancestral agriculture land in Raigad Dist. It is 22 kms from any urban center ,.
Pl advise us if we are exempted from paying capital gains tax under section 22(14) III. and not required to pay any tax or purchase 54F Bonds.madhuzende@hotmail.com

Not all agricultural land is TAX FREE . While sale of “rural agricultural land” is tax free ;”Urban” Agricultural Land is not tax free. So , you should know when is the agricultural land is ” Urban” in nature.

This is defined in Section 2(14)(iii) as follows :”agricultural land in India, not being land situated-(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 according to the last preceding census of which the relevant figures have been published before the first day of the previous year; or(b) in any area within such distance, not being more than eight kilometres, from the local limits of any municipality or cantonment board …”