Capital gain exemption on agricultural land transfers depends on timely reinvestment in replacement agricultural land. Where capital gain arises from transfer of land used for agricultural purposes by the assessee in the two years before transfer, reinvestment in replacement agricultural land within two years governs chargeability: if the capital gain exceeds the cost of the new asset the excess is charged as income and the new asset's cost is nil for any disposal within three years; if the gain is equal to or less than the new asset cost the gain is not charged and the new asset's cost is reduced by the gain for any disposal within three years. Unutilised gain must be deposited under a notified scheme before filing the return and becomes chargeable if not utilised within two years.