capital gain

transfer of rural agricultural land is exempted provided that the capital gain from. the same has been invested in another urban or rural land...to claim exemption you have to purchase another land in urban or rural area within 2 years...if you are purchasing after one year then you will have to pay tax and the same can be claimed when the land is purchased provided it is within the period of 2 years from the date of sale....while filing ITR attach sales receipt showing such sales and purchase deed if you have purchases another land within the stipulated time in order to claim exemption

Sale of urban agriculture land is taxable . Refer Defination of Capital asset under section 2 (14) of IT Act , 1961.

Further Exemption under section 54 B is avaliable to individual and HuF provided that  land is used for agriculture for 2 yrs before the date of transfer.

So capital gain income in income from capital gain.

ITR 3 will be applicable for AY 17-18

sorry jubair sir I wanted to mean what you said in your answer but conveyed only half of it....but my aim was to provide the details that you said 😢😢😢

that means if any agriculture land before the date of transfer the land is used in agriculture that is exempted Under section 54B

whether urban or rural agriculture land 54 B is applicable

Agriculture land is eligible for exemption under sec 54B only when it is used for agriculture purpose for 2 yrs prior to date of transfer by the individual or his parents. Gain should be invested in urban or rural land with in 2 yrs from the date of transfer.

Rural land is not a capital asset hence it is applicable urban agri land. But the gain can also be invested rural land to claim exemption

* capital gains from transfer of urban agriculture land is taxable .
* but such capital gain is exempted , if you purchase the new agricultural land ( rural or urban ) within 2 years from date of transfer .
* land which has been sold shall be used for agriculture purpose in 2 immediately preceding years .
* if cost of new agriculture land >or= to capital gains ( short term or long term ) then entire capital gain is exempted .
* if cost of new agriculture land < capital gains , then such cost of agriculture land is exempted .