A Rural Agricultural Land does not qualify to be a capital asset, hence no capital gains/loss arise on sale or transfer of Rural Agricultural Land. .

2) Agricultural Land situated in an Urban Area would be considered as a Capital Asset and therefore the Capital Gains Tax would be levied on the sale of Agricultural Land situated in non Rural Area.

3) exemption can be claimed from such Capital Gains under Section 54B for investment in agricultural land. The new agricultural land purchased may either be Rural Land or Non Rural Land.

Dear sir,

Since the Agri. land is situated in an urban area, therefore the capital GainTax would be levied upon the sale as it comes under the purview of Capital Asset. There are certain exemptions to Capital Gains u/s-54 B that deals with investment in agri. lands

Thank You 

You must invest the sale proceeds to purchase another land only and that land should be used for agricultural purposes only.

No construction of building or purchase of any new building is allowed.

if you can not utilize the money before tax return filing you can deposit the balance amount in any CGS scheme. Receipt of such deposits should be attached with the return.

As provided under rule 26-F, the permission granted under rule-26-E shall remain valid for a period of two years from the date of order during which period all works for putting the said land to the permitted use shall be completed; provided that the permission may be renewed up to a further period of one year if the Director is satisfied that the delay in execution of works was for reasons beyond the control of the applicant.

Under the ‘low density eco-friendly housing policy’, owners of plots ranging from 2,000 square metres to 2.5 acres would be allowed to develop farmhouses in urban areas, but no commercial activity would be allowed.

As per the policy, the eco-friendly units can have only one dwelling unit, should have ample green area and owners will be allowed urban farming and horticulture.

Hence you can try to construct the dwelling unit on the basis of the above rules prevailing in Haryana.

Yes. 

- 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 .

- Further, under section 54B , an exemption can be claimed after investing in agriculture land , whether that land come under rural or non rural .