If you buy another house from the sale proceeds of taxable agriculture land in that circumstances the capital gain arising from sale of agriculture land shall not be exempt as per section 54B of Income tax Act.
03 March 2015
If you are selling a rural agricultural land situated aerially 8 km away from municipal limits it fully exempted from capital gains, so you can buy the house. If it is capital gain taxable agricultural land if you are presently having not more than one house you can buy the house and claim exemption u/s 54F.
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