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Definition of agricultural land - Income TaxExtract Agricultural land is not a capital asset under the definition of capital assets as defined in the Income TAx Act. It means sale of agricutural land is not liable to capital gain tax. But what is the exact definition of agricultural land for this purpose. What are the conditions to satisfy to avail this exemption. A businesman purchases agricultural land and within 6 months of purchase, sells it on profit. He has never done any agricultural operations on it. Is the capital gain so arising is exempt from tax. or there is condition that he should use this land for at least two years for agricultural purpose to avail the benefit of agricultural land. Can any body tell the circular which defines the city wise boundaries, beyong which any land is termed as agricultural land.
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