Capital Gain Exemption u/s 54B & 54F simultaneously

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  1. ca.shalinpatel

    ca.shalinpatel New Member

    Dear All,

    This query is with reference to capital gain tax. As per IT Act, Sale of agricultural land is exempt from tax provided the land is rural agriculture land; however, sale of urban agriculture land is taxable under capital gain provisions and exemption can be taken if new agriculture land is purchased within 2 years from date of transfer (Section 54B). Same way, exemption u/s 54F can be availed for investing into new residential property.

    Whether exemption u/s 54B and 54F can be taken simultaneously for example, in case of sale of land some part is invested to take benefit u/s 54B (for purchasing land) and the balance is invested u/s 54F (for buying residential property). Both exemptions are allowed? Is this a valid practice?

  2. ZED

    ZED Well-Known Member

    Simultaneous exemption may be claimed. There are plethora of cases where it has been allowed. Proceed without any worries.
    ca.shalinpatel likes this.
  3. ca.shalinpatel

    ca.shalinpatel New Member

    Thank you very much
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