Capital gain on transfer of land used for agricultural purposes not to be charged in certain cases

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....hat date, purchased any other land for being used for agricultural purposes, then, instead of the capital gain being charged to income-tax as income of the previous year in which the transfer took place, it shall be dealt with in accordance with the following provisions of this section, that is to say,- (i) if the amount of the capital gain is greater than the cost of the land so purchased (hereinafter referred to as the new asset), the difference between the amount of the capital gain and the cost of the new asset shall be charged under section 45 as the income of the previous year; and for the purpose of computing in respect of the new asset any capital gain arising from its transfer within a period of three years of its purchase, the c....

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....lised shall be charged under section 45 as the income of the previous year in which the period of two years from the date of the transfer of the original asset expires; and (ii) the assessee shall be entitled to withdraw such amount in accordance with the scheme aforesaid. Explanation.-6[****]]     **************** NOTES:- 1. Inserted vide Section 11 of the Finance Act, 1970 w.e.f. 01-04-1970 2. Numbered vide Section 11 of the Finance Act, 1978 w.e.f. 01-04-1974 3. Substituted vide Section 20 of the Finance Act, 1987 w.e.f. 01-04-1988 before it was read as, "Where the capital gain arises" 4. Inserted vide Section 11 of the Finance Act, 1978 w.e.f. 01-04-1974 5. Substituted vide Section 20 ....