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  1. amazing

    amazing New Member

    Hi there,

    I've a query. My uncle owns an agricultural land in a rural area. He wants to sell it. And we have heard that one has to pay taxes if he doesn't buy agricultural land in 2 years. He doesn't want to buy any land. He owns a house in an urban area so if he invests in another residential plot , can he exempt himself from taxes. He has a daughter who is married off. If he gives the money to her daughter as a gift, can it exempt him from the taxes.

    Thanks in advance!
  2. ZED

    ZED Well-Known Member

    A rural agricultural land is not a capital asset as per S.2(14).
    Hence there will be no tax on sale of such land.

    Kindly confirm that the land is rural land.
  3. amazing

    amazing New Member

    Thanks ZED for your reply. The land is in rural area but according to act 54 F(b), one has to buy agricultural land within two years from the selling time. Otherwise there is 20% tax.

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