27 March 2011
I purchased a agricultural land in urban area but haven't used that land for any purpose. Now if i sell this land and purchase another agricultural land in urban area, will the capital gain arising to me be exempt from tax. Will i need to prove agricultural use, if yes then How?
25 August 2011
As per Section 54B, Land must be used for agriculture purpose for a period of two years immediately preceding the date of transfer of such land, only then capital gain arising will be exempt otherwise taxable.
You acn claim exemption u/s 54EC or 54F after satisfying the conditions mentioned in these section
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