Section 54B → Section 70
Capital gain on transfer of land used for agricultural purposes not to be charged in certain cases
Quick Answer
Section 54B of the Income Tax Act, 1961 (Capital gain on transfer of land used for agricultural purposes not to be charged in certain cases) corresponds to Section 70 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 54B
Provision Summary
Exempts capital gains from the sale of urban agricultural land if the proceeds are used to purchase another agricultural land within 2 years.
Sec 70
Provision Summary
Retained. Protects farmers who are forced to sell land near cities and wish to continue farming elsewhere.
Key Changes & Highlights
- Integration with Capital Gains Account Scheme (CGAS) digitized.
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Frequently Asked Questions
What does Section 54B of the Income Tax Act 1961 deal with?
Section 54B (Capital gain on transfer of land used for agricultural purposes not to be charged in certain cases) Exempts capital gains from the sale of urban agricultural land if the proceeds are used to purchase another agricultural land within 2 years.
What is the new section number for Section 54B under the Direct Tax Code 2025?
Section 54B of the ITA 1961 maps to Section 70 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 54B under the new tax code?
Section 54B is marked as "Retained" with status "Active". Impact: High - Common tax-saving tool for the agricultural community.
What are the key changes to Section 54B under DTC 2025?
Integration with Capital Gains Account Scheme (CGAS) digitized.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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