Income tax on sale of urban plot and buying agriculture land

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Marketing
21 Points Posted on 01 August 2023

Hi beloved CAs

I am planning to sell urban plot which I held for more than 2 years. I know its subject to 20% ltcg.

Is there any way to minimize/avoid taxes.
What I have heard from a person (not a CA) is, if the gains are used to buy agriculture land then no tax liability.
Can any one confirm?

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On 01 August 2023 at 21:35 Report
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Quick Summary
This discussion explores the possibility of reducing or eliminating Capital Gains Tax (CGT) when selling urban land held for over two years. The consensus among users is that reinvesting the gains into agricultural land within two years of the sale can indeed exempt the transaction from CGT, as agricultural income is tax-exempt.

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Chartered Accountant
16188 Points Posted on 01 August 2023
Agricultural income is exempt but sale of urban land results in LTCG @ 20%
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On 01 August 2023 at 21:52
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136 Points Posted on 01 August 2023
Yes..you can buy and save tax
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On 01 August 2023 at 22:41
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Chartered Accountant
16188 Points Posted on 02 August 2023
Yes you can purchase another agricultural land within 2 years from the date of transfer
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On 02 August 2023 at 15:40

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