Income tax on sale of Development rights certificates

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This discussion addresses the taxability of selling Development Rights Certificates (DRC) received for ancestral agricultural land in Pune that was designated for garden reservation. The consensus is that the sale is subject to capital gains tax. While not exempt under compulsory acquisition, relief may be available under Section 54B if another agricultural land is purchased, though specific Supreme Court or High Court case laws were requested for further clarification.

satish khandve

satish khandve (Querist)

16 April 2024 we have our ancestral agricultural land in pune city but this land gone under garden reservation. Pune municipal corporation has given DRC to us. we are planning to sale this DRC in open Market.
we have cultivated rice and other crops on this land till the DRC received.
Questions :-
1.is this sale transaction liable to pay tax under CG?
2.will it exempted under compulsory acquisition
3.If it is taxable then can we get deduction us 54B after purchased another agricultural land ?
Sir/madam Kindly explain with supreme court decisions or high court decisions.