TaxTMI 
TaxTMI 
AGRICULTURAL LAND
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....GRICULTURAL LAND<br> Query (Issue) Started By: - manoj gupta Dated:- 15-6-2010 Last Reply Date:- 19-6-2010 Income Tax<br>Got 2 Replies<br>Income Tax<br>Is it compulsory to use the land for agricultura....
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....l 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 conditio....
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....n 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. Reply By GOPALJI AGRAWAL: The Reply: Yes, land must be us....
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....ed for agricutural purposes by the assessee or his parents for 2 years. For the purpose of section 2(14), actual operations at the relevat point of time (sale) is not so relevant if the land is agricu....
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....ltural and not used for any other purpose. Reply By DEV KUMAR KOTHARI: The Reply: When benefit of S.54B is considered the land must be held for two years as stipulated in S.54B itself. This provision....
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.... is really relevant in relation to agricultural land which is a capital asset. In casse the land is rural agricultural land (not within specified limits of municipalties etc.)and it is not a capital ....
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....asset as per exclusion provision then it will not be a capital asset, so any capital gains will not be taxable.<br> Discussion Forum - Knowledge Sharing ....