Question

To claim exemption u/s 54B, the

asset transferred should be rural

agricultural land. true or false​

Answer 1

To claim exemption u/s 54B, the  asset transferred should be rural  agricultural land.

This statement is false.

Explanation:

• Agricultural land is not the asset of capital or state.
• Agricultural land is considered both urban and rural land.
• Any gain obtained from such land is free from taxes.
• Under section 2(14), agricultural land is the asset of the capital but tax is imposed on the gains obtained from such lands.
• These can be either a short-term capital gain or long-term.