Capital gain on transfer of land used for agricultural purpose - (New) Section 83 / (Old) Section 54B

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.... the HUF. • Period of Agricultural Use • The land must have been used for agriculture during the two years immediately preceding the date of transfer. • Purchase of New Agricultural Land • Another land must be purchased within two years after the date of transfer. • The new land must be intended for agricultural use. Quantum of Exemption Lower of: - a) Capital Gains, or b) Cost of New Asset/Deposit Amount in the scheme Transfer of new agricultural land before 3 years • Where Reinvestment is Lower than Capital Gain • if Reinvestment if lower than capital Gain then • Exemption is limited to the cost of the n....

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....Section 54B of the Income Tax Act, 1961 [ Upto 31.03.2026 ] Section 54B(1) - Conditions and Quantum of Exemption Section 54B provides relief from capital gains tax when agricultural land used by an individual, their parent, or a Hindu Undivided Family (HUF) is sold and the capital gain is reinvested in another agricultural land. Assessee Individual/HUF Nature of Asset Long-term capital asset / Short-term capital asset Asset to Transfer Urban Agricultural land used by Individual himself or by his parents for agriculture purpose during previous 2 years immediately preceding the date of transfer. New assets to be purchased or constructed Agricultural land whether in Rural Area or Urban Area Time limit....