Purchase of agricultural land from the Capital Gain that is incurred on selling of house ?

POSTED BY Malik Khan ON December 1, 2013 10:58 pm COMMENTS (2)

Hello Sir,

Is it permissible in the act, to purchase of agricultural land from the Capital Gain that is incurred on selling  of  house in city limits. I have been told that you can again invest the amount (CG) only in purchase of another house or some commercial property.Govt. bonds is a different issue.The house mentioned above was not self occupied…it was on rent.

2 replies on this article “Purchase of agricultural land from the Capital Gain that is incurred on selling of house ?”

  1. satish says:
    July 10, 2015 at 12:55 pm

    Dear All,,pls advice on few queries about Buying Farming land…

    Firstly to buy a Farming Land(Agriculture land), can we get Loan against Home mortgage to bank and pay the amount to seller of farming Land..Which is the bank will be and what will be interest rates are applicable????

    Secondly this Loan Repayment premiums are applicable under 80C???

    Reply
  2. ashalanshu says:
    December 2, 2013 at 12:17 pm

    Dear Malik, the tax benefit under section 54 is available only for purchase of a new readymade house or to construct one. Sorry agriculture land purchase ‘ll not save you capital gain tax.

    Thanks

    Ashal

    Reply

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