Sir i have a query regarding to the capital gain tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 December 2013 sir i would like to know if i have sold an urban agriculture land then to save capital gain tax we can invest combinedly in house and agriculture e.g. i have sold land of 10 lack then i can invest 5 lack in house and 5 lack in other agriculture land is it fine ?

i have one other query too, in utter pradesh if the market value of urban agriculture land is less than the circle rate then what is the procedure of getting valuation done its after sale of property or before sale of property

please help me

pulkit
+91-8899103744

Nikhil Kaushik

Nikhil Kaushik (Expert)
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31 December 2013 yes it is fine. you can use two different sections to claim exemption.

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Querist : Anonymous

Querist : Anonymous (Querist)

31 December 2013 sir i have one more query as if the market valuation of urban agriculture land is less than circle price then what is the best procedure of getting valuation done by it department and it should be done before the sale of land or after sale of land

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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25 July 2025 Here’s a detailed answer to your queries on **capital gains tax on urban agriculture land** and valuation procedure:

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### 1. **Investment to save capital gains tax by splitting amount**

* Yes, you **can invest in two different assets** to claim exemption under different sections of Income Tax Act, provided conditions of each section are met.
* For example:

* Invest ₹5 lakh in **house property** (under Section 54)
* Invest ₹5 lakh in **agriculture land** (under Section 54B or 54F depending on situation)
* This is acceptable as long as the total invested amount is equal to or more than the capital gains to claim full exemption.
* Make sure you satisfy the respective conditions, such as timelines for investment and holding period.

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### 2. **Valuation when market value < circle rate in Uttar Pradesh**

* Circle rate is the **minimum value** at which property can be registered. If the **market value is lower** than the circle rate, Income Tax Dept usually takes the **circle rate as deemed sale consideration** to calculate capital gains.
* To get fair valuation:

* **Before sale:** Get a valuation certificate from a registered valuer to establish fair market value.
* **After sale:** You can also obtain valuation from approved valuers to contest circle rate for Income Tax purposes.
* It’s **better to get valuation before sale** and document it properly to defend against tax department scrutiny.
* Also, get a **Registered Valuer’s certificate** mentioning basis and method of valuation for better acceptance.

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### Summary Table:

| Query | Answer |
| -------------------------------------------- | ---------------------------------------------------------------------- |
| Can I split investment in house + agri land? | Yes, allowed under respective sections if conditions met |
| Market value < Circle rate, when to value? | Preferably **before sale** with registered valuer |
| What valuation is accepted by IT Dept? | Usually circle rate, but can be contested with proper valuation report |

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If you want, I can help draft an application or format for valuation certificate or guide you on which section to apply for your investments. Need help with that?

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