If the new urban agricultural land purchased is transferred within 3 years from the date of it’s purchase, the amount of capital gain exempt earlier shall be reduced from the cost of the new agricultural land for the purpose of computing tax on short term capital gain. However if the new land purchased is a rural agricultural land such withdrawal of exemption is not applicable.
Agricultural land, Sale and Purchase of Agricultural land, Tax on agricultural land selling Clarified the tax liability if agricultural land is sold within 3 years of purchase.
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