How to Save Tax on Urban Agricultural Land Sale? | Section 54B Explained 💰

Описание: In Part 1 we learned that Urban Agricultural Land is taxable. But did you know you can legally avoid paying this tax? 😲 In this video we explain Section 54B of the Income Tax Act which allows you to claim an exemption if you reinvest in agriculture.

📋 Key Rules to Save Tax:

Reinvestment: You must purchase new agricultural land (Urban or Rural) within 2 years of the sale.

Lock-in Period: The new land MUST NOT be sold for 3 years. If sold early the exemption is revoked and you will have to pay the tax retrospectively!

Capital Gains Account Scheme: If you haven't bought new land before the Income Tax Return filing date you must deposit the money in a specific Capital Gains Scheme Account to avoid tax.

📌 Important Sections:

Section 54B: Exemption for capital gains on transfer of land used for agricultural purposes.

Section 83 (New Act): Corresponding section in the proposed Direct Tax Code.

Watch the full video to understand the timelines and avoid penalties!

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Section 54B, Capital Gains Tax Exemption
Agricultural Land Sale Tax
rban Land Tax Saving
Capital Gains Account Scheme
Income Tax India, Real Estate Tax
Tax Saving Tips, Land Investment
Reinvestment Benefit
Tax Planning India
Property Sale Rules
Kerala Real Estate
Financial Freedom
Wealth Management
Land Tax Rules
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Tax Consultancy
Property Investment
Income Tax Act 1961.