New Delhi, Aug. 24 -- An individual told Mint that he had inherited an agricultural land parcel from his father and was the second generation to inherit it. The original purchase date of this non-residential asset is estimated to be between 40 and 50 years ago.

He asked whether the sale proceeds from agricultural land could be reinvested in a house to claim a deduction under Section 54F of the Income-tax Act, or whether they qualify for the Section 54 exemption.

Parizad Sirwalla, Partner and National Head - Tax, Global Mobility Services, KMPG, noted that to determine taxability on the land parcel's sale as capital gains and related deductions, "it should first be examined whether the said agricultural land qualifies as a capital asset."...