Hello,
As per Section 54B if X transfer a urban agricultural land and attracts a LTCG of Rs 15 lakh. Now he purchases a new Rural agricultural land for Rs 20 lakh thus getting entire capital gain exempt. Now as per section 54B if new agricultural land is transferred before 3 year then Cost of acquisition will be reduced by amount of exemption. But in this case if X sells land the very next day, then how will this section apply? As sale of rural agricultural land attract no capital gain whether LTCG or STCG. Is this kind of tax saving allowed?
CAclubindia
