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"_
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