GENERAL KNOWLEDGE

Detailed explanation-1: -Exemption under section 54B is available only if the capital gain on transfer of urban agricultural land is invested in purchase of new agricultural land.

Detailed explanation-2: -Exemption under Section 54B of the Income Tax Act is available on Capital Gains on the sale of one agricultural land and purchase or construction of another agricultural land. The amount of Exemption under Section 54 will be lower of: The cost of new agricultural land.

Detailed explanation-3: -Union Budget 2023-24: Capital Gain Tax Exemption under Section 54. Union Finance Minister, Nirmala Sitharaman has announced capital gain tax exemption on the sale of the first residential property, capped at Rs 10 crore.

Detailed explanation-4: -Section-54 : A Residential House Property. Section-54B : Agricultural land if it was used by the individual or his parents for agricultural purposes for at least 2 years immediately prior to transfer.