If the land is situated under municipality area where the population is less than 10000 persons or the distance from the municipality to the specified land is more than 8 KM, such land is a rural agricultural land. Rural agricultural land is not a capital asset and it’s sale does not attract capital gains.
Rural agricultural land, Tax filing, Income tax filing This page explains about the rural agricultural land and the conditions under which it is applicable while income tax return filing.
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