As you know the profit from transferring the capital assets is taxable from the view of income tax under capital gains. It is also known by all that transfer of agricultural land is also chargeable of the tax as per income tax rule. But to decide that particular land is agriculture land is not is very hard. People always seems to confuse about this. There are some factors which tell us that particular land is agriculture land is not.
Land will be agriculture land if it is not in these area:-
1- Municipality area:- land which comes in municipality area, a cantonment board and the town committee .
2- Population:- the area which does not have the population of 10000 or more according to the preceding cencus.
3- Area:- the land is not situated less than 8 kilometers from local municipality limit.
4- In any area specified by the Government vide Notification NO. 9447, dated January 6, 1994
To see the notification of the government look this table.