EXEMTION OF CAPITAL GAIN

Section 54 & 10(37) not applicable to companies.

Exemption u/s 2(14) is available only if

agricultural land in India, is sitauted —

     (a)  in any area which is comprised within the jurisdiction of a municipality⁴¹ (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population⁴¹ of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year ; or

     (b)  in any area within such distance, not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in item (a), as the Central Government may, having regard to the extent of, and scope for, urbanisation of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette⁴²;]

Defintion of Capital Asset does not include Agricultural Land. Hence sale of Agri Land is not under purview of Capital Gains at first.

agree with  lokesh