TaxTMI 
TaxTMI 
Is it compulsory to use the land for agricultural operations for at least two years by the assessee before he can claim the benefit of exemption from capital gain on sale of agricultural land if all the other conditions are satisfied. this condition is to be fulfiled for claiming exemption u/s 54B. Is it also applicable to claim exemption for agricultural land not being a capital asset.
AGRICULTURAL LAND
15 Jun 2010 
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Agricultural land exemption: two-year agricultural use required before claiming capital gains relief; non-capital rural land excluded.
Exemption for agricultural-land capital gains requires the land to have been used for agricultural purposes by the assessee or his parents for two years as stipulated in the exemption provision; this requirement applies when the land is a capital asset. If land qualifies as rural agricultural land excluded from the definition of capital asset, it will not attract capital gains tax on disposal. (AI Summary)
Exemption for agricultural-land capital gains requires the land to have been used for agricultural purposes by the assessee or his parents for two years as stipulated in the exemption provision; this requirement applies when the land is a capital asset. If land qualifies as rural agricultural land excluded from the definition of capital asset, it will not attract capital gains tax on disposal. (AI Summary)