Kaushal Agrawal
Finance Act 2013 has changed the meaning of urban area in relation to agricultural land.
The definition of urban area is reflected at 2 places in Income tax act.
1. Capital Asset. Where it says that agricultural land not situated in urban area is not a capital asset. Hence no capital gain can arise.
2. Meaning of agricultural income. Letting out of building for agricultural purpose which is not situated in urban area is agricultural income.
This video has made an attempt to analyse both the above situations.
