Urgent-Capital Gain for Private Ltd Company

llustration

Mr. Raja purchased an agricultural land in April, 2017. Since the date of purchase, the

land was being used for agricultural purpose. The land was sold in July, 2022 for Rs.

8,40,000. Capital gain arising on sale of land amounted to Rs. 1,00,000. Can he claim the

benefit of section 54B by purchasing another agricultural land?

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Exemption under section 54B can be claimed in respect of capital gains arising on

transfer of capital asset, being agricultural land (may be long-term or short-term).

This benefit is available only to an individual or a HUF. The land should be used for

agricultural purpose at least for two years. In this case, all the conditions of section 54B

were satisfied and, hence, Mr. Raja can claim the benefit of section 54B by purchasing

another agricultural land within the time-limit specified under section 54B.