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LTCG treatment of sale of urban agricultural land

Tax queries 274 views 3 replies

bkp

self-employed

99 Points Joined March 2012

Question: Plot of agricultural land (in urban area) is sold.

Can the LTCG from sale of this land be reinvested in a residential property to avail of LTCG exemptions for purposes of tax, or does it necessarily have to be in another agricultural plot. Would be grateful for your guidance.

Replies (3)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

208062 Points Joined July 2016

Yes, exemption u/s. 54F can be availed...

Roshni

Studwnt

1141 Points Joined February 2016

You can invest in residential property.

bkp

self-employed

99 Points Joined March 2012

Can you please clarify under which provision?? For I am confused by the following regrding sale of agricultural land:

"Conditions you need to meet Under Section 54B for claiming exemption from Capital Gains

The exemption is available to an Individual or a HUF.
The land which is being sold must have been used for agricultural purposes by the individual or his parents or by the HUF for a period of 2 years immediately before the date of transfer.
Another land for the agricultural purpose should be purchased within a period of 2 years from the date of transfer of this land.
The new agricultural land which is purchased to claim capital gains exemption should not be sold within a period of 3 years from the date of its purchase."