Which capital asset is qualified for section 54B exemption?

Capital gains exemption for agricultural land applies when urban agricultural land used by owner, parent or HUF qualifies.

The exemption under section 54B applies where capital gain arises from transfer of agricultural land used for agricultural purposes for at least two years prior to transfer; use by the assessee, the assessee's parents, or an HUF qualifies regardless of ownership, and the exemption applies to gains whether short-term or long-term. The exemption is available only for urban agricultural land, since rural agricultural land is not a capital asset and is outside the scope of capital gains.