Capital gains exemption for agricultural land transfers requires reinvestment in agricultural land or deposit to secure relief. Section 54B grants a capital gains exemption to individuals and HUFs who transfer agricultural land used by them or their parents in the two preceding years, provided the capital gain is reinvested in agricultural land (rural or urban) or deposited in the Capital Gain Deposit Scheme before filing the return; the deduction equals the lower of the capital gains or the cost/deposit amount, and if the new land is transferred within the specified holding period the cost is reduced by the exemption claimed, while transfers of rural agricultural land may not attract capital gains under the scheme.