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Income tax on sale of urban plot and buying agriculture land

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SaiPSY

Marketing

6 Points Posted on 01 August 2023

Hi beloved CAs

I am planning to sell urban plot which I held for more than 2 years. I know its subject to 20% ltcg.

Is there any way to minimize/avoid taxes.
What I have heard from a person (not a CA) is, if the gains are used to buy agriculture land then no tax liability.
Can any one confirm?

Replies (3)

Quick Summary

This discussion explores the possibility of reducing or eliminating Capital Gains Tax (CGT) when selling urban land held for over two years. The consensus among users is that reinvesting the gains into agricultural land within two years of the sale can indeed exempt the transaction from CGT, as agricultural income is tax-exempt.