Capital gain on sale of urban agricultural land

Income Tax Income from Capital Gains
1

Hi,
If I sell an urban agricultural land (Held for 20 years), can I avail exemption under 54F for purchasing a residential house property?
Is urban agricultural land an eligible capital asset for sec 54F?
Further, if your answer is in affirmative, -
If capital gain is more than the price of residential house property, is there any other section under which I can claim exemption for balance amount of capital gain?

Thanks.

2

Hi @Jiyamehra

Urban agricultural land qualifies as a capital asset. Capital gain/loss shall arise on the sale of the same.
If you invest the sale proceeds in the purchase of a new agricultural land (in rural or urban area) within 2 years after the date of transfer, you can avail the deduction u/s 54B.

The amount of exemption shall be lower of the capital gain or cost of the new asset.