New Delhi, Feb. 6 -- Agricultural income is tax-free, and selling farmland can be, too-but only if it qualifies as rural agricultural land.

So, what exactly makes land 'rural' in the eyes of the taxman? The answer lies in a set of specific conditions that could mean the difference between zero tax and a hefty capital gains bill.

To be considered rural agricultural land, the property must not be located within the limits of a municipal or cantonment board that has a population of 10,000 or more, according to the last census. Remember, the last country-wide census was done only in 2011. The 10-year census that was due in 2021 was suspended due to the covid-19 pandemic.

Also read: No tax on income up to Rs.12 lakh. Are NRIs eligible?

If ...