Eligible Assessee – Individual and HUF
Eligible Capital Gain – Capital gain arising from transfer of land which in 2 years immediately preceding the date on which the transfer took place was being used by the HUF or individual or his parents for agriculture purposes.
Condition for exemption – The assessee has purchased any other land for being used for agricultural purposes within a period of 1 year before or 2 years after the date on which such transfer took place.
Amount of exemption – The amount of exemption will be lower of following
a) amount of capital gain
b) cost of such land
Lock in period – 3 years
If such new land is transferred within 3 years of its purchase or construction, then its cost of acquisition shall be reduced by the amount of the capital gains exempted earlier for the purpose of computing capital gains on such transfer.
Benefit of Capital Gains Account Scheme, 1988 is available under this section.