long term capital gain on agriculture land

YOU CAN GET EXEMPTION FROM LTCG U/S 54(F) BY CONSTRUCTING/ PURCHASING HOUSE PROPERTY WITHIN 2 YEARS FROM DATE OF TRANSFER.

FURTHER YOU CAN BUY ANOTHER AGRICULTURE LAND AND CAN AVAIL DEDUCTION U/S 54(B) ( TIME LIMIT 2 YEARS FROM DATE OF TRANSFER OF ORIGINAL ASSET)

YOU CAN BUY BONDS OF REC OR NHAI WITHIN 6 MONTHS FROM TRANSFER OF ORIGINAL ASSET BUT BEFORE FILLING RETURN U/S 54(EC)

Dear Sir,

1) Purchase agriculture land -within 2 years from the sale {Sec 54B)

2) Yes, but other condition of Sec 54F should be fulfilled. U should not own more then oe residential house apart from that.

3) Investment in REC /NHAI Bonds within 6 months from the sale. Limit is Rs. 50 Lcas {Sec 54EC} 

4) There are three different ways of saving tax and I guess they will suffice ur requirement.

i have sold agriculture land and earned long term capital gain in my individual name. now where to invest to save ltg tax,

Reply : where the capital gain arises from the transfer of a capital asset of land which was being used by the assessee, in the two years immediately preceding the date of transfer, or a parent of his for agricultural purposes,

Then if you purchases, within a period of two years, any other land  used for agricultural purposes, then;

(1)If the amount of the capital gain is greater than the cost of the land so purchased the difference between the amount of the capital gain and the cost of the new asset shall be charged to tax.

If the amount of capital gain is less then the amount of cost of assets purchased then the whole of the capital gain is exempt from the tax

For such purpose there is lockin period of three years, if the new assets is sold within the period of three years the amount of cost of such assets is reduced with the amount of capital gains.

2.can i invest in constructing my residential . house which i jointly own with my father

Reply: Yes you can also invest in the residential property jointly owned with your father as well

3.capital gain bond and in what time.

Reply As per the 54EB can invest in capital indexed bond within a period of six months.The proportion amount invested is allowed as deduction also there is lockin period of seven years in the case of Bonds,

4.or any other way to save?

Reply :You can even invest in residential property in and claim exemption in the 54F.

Dear navin & others,

Agreed there is sale of agricultural land but whether the same is agricultutal land situated in specified area (commonly known as urban land) or unspecified area (commonly known as rural land). If its a rural land than exemption u/s 10(37) is available to u & nothing is taxable. Alternatively amir & sandeep reply will hold good for urban agri land.

Regards

Kanti jain

I agree wid Mr. Kanti's reply....