10_Baha Kazi (1 Points)
11 March 2021
Nidhi
(Chief Accountant)
(3150 Points)
Replied 12 March 2021
CA HARSHITA AGARWAL
(FCA)
(71 Points)
Replied 12 March 2021
If the land you sold is more than 8km from municipal boundary of Mumbai it will be a rural agriculture land. hence no taxation will be there.
If land is within 8KM from Municipal boundaries of Mumbai then taxation arises. Now , if you sale any such land and whole sale proceed is again invested in other agriculture land, than you shall claim exemption U/s 54B.
Section 54 is applicable only if you sale a residential property.
If you want you can provide clear figures of your sale for more clarity.
anil jain
(Partner)
(1067 Points)
Replied 14 March 2021
There is no condition of rural/urban land to claim 54B
the same is reproduced below
Capital gain on transfer of land used for agricultural purposes not to be charged in certain cases.
54B. (1) Subject to the provisions of sub-section (2), where the capital gain arises from the transfer of a capital asset being land which, in the two years immediately preceding the date on which the transfer took place, was being used by the assessee being an individual or his parent, or a Hindu undivided family for agricultural purposes (hereinafter referred to as the original asset), and the assessee has, within a period of two years after that date, purchased any other land for being used for agricultural purposes, then, instead of the capital gain being charged to income-tax as income of the previous year in which the transfer took place, it shall be dealt with in accordance with the following provisions of this section, that is to say,—
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