What is the taxability of capital gain arising from the sale of agricultural land?
​​​For capital gain purposes, agricultural land is classified into two categories;

​Rural Agricultural Land and
Urban Agricultural Land.
Any gain arising from the transfer of rural agricultural land is not chargeable to tax under the head Capital Gains because such land is specifically excluded from the definition of a capital asset. Whereas the gain arising from the transfer of urban agricultural land is chargeable to tax under the head Capital Gains.​