​Is sale of agricultural land tax free?

Income from sale of agricultural land is tax free if the land is situated outside the municipality.

- the distance of the land from the municipality is measure from the ending boundry of the municipality to your land. 
- the population of the nearby municipality has to be taken into consideration.
If the popultion ( 2011 census) is more then the distance should also be more.

- 2 kilometres in the case of the nearest municipality or Nagar Palika with a population of more than 10,000 but less than 100,000/-

If the nearest municipality or Nagar Palika has a population of more than 1,00,000 but not more than 10,00,000, the distance is 6 kilometres.

- 8 kilometres in the case of a nearby municipality or a Nagar Palika with a population of more than 100,000 people.

The most significant change, which took effect on April 1, 2013, is that the distance is now measured aerially.

10000 population .....above 0 km 

10000 to 1 lakhs population ....Above 2 kms 

1 lakh to 10 lakhs ......Above 6 kms 

more than 10 lakhs population .....​Above 8 kms