Amount of Exemption under section 54 will be lower of the amount invested in new agricultural land or the Capital Gain. This exemption is available when:
- A Long Term or Short Term land which was used for agricultural purpose is sold.
- Out of the sale proceedings, another agricultural land is bought within 2 years from the sale of the first agricultural land.
- Such new agricultural land may be in a rural area or urban area.
- The new land should not be sold within 3 years from the date of its purchase.