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Querist : Anonymous

Querist : Anonymous (Querist)

02 March 2013 If "Agricultural Land" is sold but the said land was not used for agricultural purpose whether any capital gain arised for the same or not. Pls. give name of case law supporting the said reply.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

03 March 2013 Before reading the case law it is better to read the Section. Here , the Section relevant to Urban Agriculture Land, which you may refer is -Section 54B.
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In case of such Urban Land which has not been used for Agriculture Purpose in preceding 2 years of sale- Capital gain will arise. The only disadvantage is -Benefit of Section 54B will not be available. Other Sections like 54F and 54EC will provide the benefit of exemption
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In case of Rural Agriculture Land- the condition of its use for Agriculture Purpose is silent. So, it can be silently sold without making much hue and cry about its use.
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