Can we purchase agriculter land to save LTCG

sandy009 1
Viewed 1967

Hi Pankaj,

I am planning to sale the flat which is on my name and as per the calculation there will LTCG of 23 Lacs, now if I invest this amount in agriculture land will there be tax benifit available or is it mandatory to invest it in residential property. second question is can I buy more than one residential plot from above LTCG?

agricultural-land residential-property long-term-gains section-54 capital-gains income-tax
1 Answers

As per section 54, to save income tax on long term capital gains arising from sale of house property, one can invest into another residential house property.

So you won't be able to save tax by investing into an agricultural land or even a residential plot. if plot is purchased, a new house has to be constructed on same within three years of sale.

Also, tax benefit will be available only against a single residential house property not more than that.

Pankaj Batra5212
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