Section 54B exemption requires:
AAgri land used 2 yrs prior, transferred and reinvested in agri land
BAny agri land
CUrban land
DLand in municipal limits (per relevant Section) (per relevant Section)
Answer & Solution
Correct answer: A. Agri land used 2 yrs prior, transferred and reinvested in agri land
1. Section 54B exempts gain on transfer of agri land (used for agriculture 2 years prior) by individual/HUF.
2. Reinvestment in another agri land (urban or rural) within 2 years.
3. Lock-in: 3 years on new land from purchase.
_Source: ICAI BoS CA Final Paper 7, Ch 4 "Capital Gains"_
Related questions
A resident individual sells a building in January 2026 that was acquired in 2010. While coAn asset bought in June 2004 for Rs 50,000 was converted into stock-in-trade in November 2A residential plot bought in 1995 for Rs 30,000 had a fair market value of Rs 1,40,000 andA non-resident individual (aged 45) has agricultural income from rural land of Nil taxableNet sale consideration on transfer of a long-term plot of land is Rs 9 crore, yielding capAn individual earned long-term capital gains of Rs 12 crore on selling a residential houseIn a slump sale of an undertaking owned and held for 5 years, which statement is correct?Mr. X bought 300 listed equity shares at Rs 400 each in 2016 (STT paid). Their highest quo