For not paying capital gains tax you should buy land. There are different land laws in different states and some prohibit people from buying lands if they are not farmers. A private limited company cannot buy land although it may invest.

1. If you form a company and buy the land in its name you will not be able to avail the Long Term Capital Gain Exemption as company has not sold the agricultural land.

2. Company is free to buy the agricultural land if there is a provision to this effect in the Articles of Association.

Buying agricultural land is quite easy at Punjab as compared to other states in india. There are no major restrictions to buy the same. You can buy the same as aforesaid

Agricultural land in Rural Area in India is not considered a capital asset. Therefore any gains from its sale are not taxable under the head Capital Gains.

Well, To claim LTCG excemption, property can be purchase in the name of close relative but company has individual status. Exemption not available if purchased in the name of company.

Company can purchase agriculture land subject to applicable ceiling.

- As per Section 54 & 54 F  of the Income Tax Act, you can re-invest the long term capital gains amount in residential house property and claim an exemption therein.

- Further , no tax shall be paid , if you use the entire gain to buy another house within 2 years from the selling of your old property .

- Hence, if you form a company and buy the land in its name, then you cannot claim the benefit of Section 54 & 54 F legally. 

- However , a company , whether new or old can buy agriculture land , with the approved provisions of articles of association and memorandum of association , and with the approval of the Registrar of Companies. 

- Further , there is no requirement of any director being an agriculturist.

Hello,

1. Yes, you can form a private limited company and purchase agricultural land, provided the land is used for agricultural purposes alone. This is subject to  the approved provisions of articles and the Memorandum of the Pvt.Ltd company and must be approved by the Registrar of Companies (ROC).

2. It is not a requirement  that any of the Director of the company must be an agriculturist.

However, the Articles of the Pvt. Ltd. co. should clearly outline the agricultural activities the Pvt. Ltd. company proposes to indulge in.

Dear Sir, 

You may easily form a company in Punjab and buy the land in its name because there are no such restrictions regarding state and central laws, if the gainers from capital gain of sell of the properties are stakeholder/directors of the company. Thus, a newly formed company can buy agriculture land without any ceilings and no permission to be taken from the government. 

Form a duly registered company and purchase the land in the name of the company and get mutated the name in the record of the concerned tehsil, no need for any permission.

Private Limited company CAN CERTAINLY BUY AGRICULTURAL LAND and develop and perform agricultural activities on it, BUT SUBJECT TO the approved provisions of articles and the Memorandum of the pvt.ltd and MUST be approved by the Registrar of Companies (ROC). There is no requirement of any director being an agriculturist. The Articles of the Pvt. Ltd. co. should clearly outline the agricultural activities the Pvt. Ltd. proposes to indulge in.

Generally, agricultural land is not considered a capital asset and, therefore, its sale does not attract capital gains tax.

However, if the land you hold is located within eight kilometres of a municipality, municipal corporation or cantonment board with a population of at least 10,000, this land will be treated as capital asset and you will have to pay capital gains tax.

Thus if the agricultural landed property that you have sold earlier do not attract the capital gains tax if it is not within the limit as mentioned above. 

If so, there was no need to deposit in a capital gains Account.

The property that was sold if was held in the individual name prior to selling then the individual only can claim the exemption from paying the capital gains tax.

The investment in a company for the purpose of buying an asset in the name of the company cannot be  exempted from paying the capital gains tax. 

For buying agricultural land in the name of the company, it will depend on the state laws which has maintained the ceiling for individual and the companies accordingly. 

There are no permissions to be taken from the authorities. 

Ypu can confirm with the state policies and proceed 

Eventually the capital gain amount is exempted only in the name of individuals in case you are accessing a property in name of newly formed company the capital gain benefits may not be available to the individuals.

This will be good to the land in the name of individuals and later we can make consortium to transfer the land to the new company as their share in the company.

However you have to pay the registration fees twice in this regard to transfer the land to the company otherwise all the members of the company have to give undertaking that they have transferred their share the land to the company and in future for any development they have to sign the transfer deeds

Yes you can form a company and buy agriculture land in name of that company.