Agricultural land sale

I got a amount of 1crore by the sale of agricultural land. i already have a own house. now I want to purchase a commercial building by the amount(1cr) by the sale of land. what will be the tax treatment for this please help me urgent
Replies (3)

It depends whether Agriculture Land falls within the definition of Capital Asset u/s 2(14) of the Income Tax Act, 1961 or not.

If it falls within the meaning of capital asset, than one has to determine whether it is a short term or long term capital gain and accordingly you can claim exemption u/s 54 of the Income Tax Act, 1961. Even if assumed that it falls u/s 2(14) of the Income Tax Act, 1961 than also capital gain would be taxabe since investment in commercial property cannot help you to claim exemption from capital gain u/s 54 of the Income Tax Act, 1961

Rural agricultural land is fully exempted from tax as it is not covered under capital assets definition under income tax act. If you want to save tax and if the asset is long term and urban you can buy another agricultural land  to get deduction u/s 54B  and /or invest in bonds u/s 54EC or a residential house u/s 54F. Otherwise you can opt to pay the capital gain tax after indexation.

if your agriculture land is falls under definition of capital asset meaning of Income tax act 1961, then your liability to pay the tax on that otherwise not. If you want to save the tax then you have to invest in agriculture land u/s 54B.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
13 November 2026
Accountant

New Mobile India

Muzaffarpur

B.Com

View Details
Company
10 November 2026
FP&A Executive

Gujarat Guardian

Ankleshwar

CA Final

View Details
Company
24 October 2026
CA Industrial Trainee

Fytomax Nutrition Private Limited

Aurangabad

CA Inter

View Details
Company
14 November 2026
Manager - Indirect Tax (GST)

Westbridge Consulting LLP

New Delhi

CA

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
Featured 29 October 2026
Accounts Executive

Synergy Keystone

Chennai

B.Com

View Details
Company
02 November 2026
Audit Executive

SRJP & Co LLP

Kochi

CA Inter

View Details
Company
ARTICLESHIP 28 October 2026
Article assistants

Shyam S Gupta and Company

New Delhi

CA Inter

View Details