Agricultural Land which is not within the prescribed limit from a municipal area of a notified area are not capital assets and are not taxable in the hand of individuals selling those. Since your land is agricultural land and it is beyond the prescribed limit from municipal committee it does not fall under the ambit of urban agricultural land and is there fore beyond the preview of taxation. Enjoy it. Be sure that the land is agricultural land. To qualify it to be a agricultural land, it has to used for agricultural purpose within 2 years immediately preceeding the year of transfer.
I sincerely thanks Mr.A V Vishal & Mr.C V Chugh for their prompt replies. The land indeed is only 5 months old purchase. These are 2 conflicting replies. I shall be glad if some more panelists give their replies. Thanks again to all penalists.