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Sale of agriculture land & exemption u/s 54b

krishna (Chartered Accountant) (39 Points)

22 June 2018

Whether 54B exemption is available if purchase of new agriculture land is within the municipal limit?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185339 Points)
Replied 22 June 2018

The new land purchased must be agricultural land in revenue record, be it in rural or municipal area...... but should be within India.....

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Langesh Siva (Chief financial Officer- CFO ) (164 Points)
Replied 22 June 2018

Exemption under section 54B can be claimed in respect of capital gains arising on transfer of capital asset, being agricultural land (may be long-term or short-term). This benefit is available only to an individual or a HUF. The land should be used for agricultural purpose at least for two years.

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