Tax Exemption on Capital Gains when selling Agricultural Land

Introduction

In the past I have written many articles about the capital gains and capital gains while selling the agricultural land. Also I have written separate article about when agricultural land is capital asset?. Note that, in certain cases the capital gains are fully exempt in case of the  profit from selling the agricultural land. This article presents the rules associated with that scenario. If you have any doubts, please post it in the comments section. If you like the article, get free email updates.

Capital Gains Exemption (Section 54B)

• If Agricultural land not forming part capital asset and sale of which will attract capital gains tax subject to exemption under Section 54B. The following are the conditions mentioned in the section 54B to get the tax exemption.
• If the agricultural land should have been used for the agriculture purpose.
• Exemption is not available to a Hindu Undivided Famiy (HUF) or any other taxpayer.
• The land should have been used by the asses see or his parents with in two years immediately preceding the land sale or transfer date.
• The asses see should have been purchased the agricultural land with in two years immediately preceding the land sale or transfer date.
• The whole amount should have been used for purchasing the new agricultural land. Otherwise the difference amount will be charged for the capital gains tax.
• The new asset purchased should not sold with in three years of time.

References

I have published many other articles related to capital gains and the agricultural land sale. I would suggest you to read the following articles to get more knowledge on the topic. If you have any doubts, please post it in the comments section. Also get free email updates.

1. Capital Gains on Agricultural Land
2. When Agriculture Land is Capital Asset?
3. What is Capital Gains Account Scheme?
4. What is capital gains tax saving bonds?
5. What is capital gains tax saving bonds?

Summary

I hope this article would have provided the some basic idea on how to exempt from the capital gains coming from agricultural land sales. If you have any queries, please post it in the comments section.

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