Section 54B → Section 83

Exemption on sale of agricultural land reinvested in agricultural land

Section 54B of the old Income-tax Act, 1961 · new section 83 under the Income-tax Act, 2025

New reference Section 83

Income-tax Act, 1961Section 54B

Land used for agriculture by assessee/parent/HUF for 2 years before transfer
New agricultural land bought within 2 years
Capital Gains Accounts Scheme deposit before return due date
3-year lock-in

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Section 83

Same exemption, now section 83
Same 2-year use and purchase windows
CGAS deposit retained (83(2))
3-year lock-in retained

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Renumbered; conditions unchanged.

Practice notes

Rural agricultural land is not a capital asset at all; this exemption matters mainly for urban agricultural land.

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

What is section 54B called in the new Income Tax Act 2025?

Section 83: exemption where capital gains from agricultural land are reinvested in agricultural land within two years.

What is section 54B called in the new Income-tax Act, 2025?

Section 54B of the Income-tax Act, 1961 corresponds to Section 83 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What changed in section 54B under the new Income Tax Act?

Renumbered; conditions unchanged.

Is section 54B still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 54B of the 1961 Act. Section 83 of the 2025 Act applies from tax year 2026-27.

Related sections

54→82Exemption on long-term capital gain from sale of a residential house reinvested in another residential house 54F→86Exemption on long-term capital gain from any asset other than a residential house, when net consideration is invested in a residential house 54EC→85Exemption on LTCG from land or building invested in specified bonds (NHAI, REC, etc.)