30 September 2013
Hi! I have purchased agriculture land in urban area in 2006-07 for Rs. 70,000.00 and sold the same in 2012-13 for Rs. 18,00,000.00 and have purchased agriculture farm land in urban area for Rs, 11,00,000.00 in 2012-13. Pl. let me know the amount on which I have to pay Capital Gain tax.
30 September 2013
Exemption under section 54B can only be claimed by an individual.
1) You can claim this exemption only if urban agricultural land transferred is used by you or your parents for agricultural purpose during 2 years immediately before the date of transfer of such agricultural land.
2) You have purchased another agricultural land whether rural or urban to be used for agricultural purpose within 2 years from the date of transfer of original agricultural land.
The amount of exemption is equal to the amount invested in the purchase of new agricultural land subject to the amount of capital gain.
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