If new agricultural land purchased for which exemption was claimed u/s 54B is transferred within 3 years then.

CS Executive · Tax Laws · PYQS · December 2022
If new agricultural land purchased for which exemption was claimed u/s 54B is transferred within 3 years then.
(A) Capital gain exempt u/s 54B earlier shall be separately taxable as capital gains
(B) Capital gain exempt u/s 54B earlier shall be added to the cost of acquisition of new house property
(C) Capital gain exempt u/s 54B earlier shall be reduced from cost of acquisition of new house property
(D) The entire capital gain on new transfer shall be taxable

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Income Tax Act, 1961

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