How I Claimed LTCG Exemption as an NRI Selling Agricultural Land — A Complete Guide
Selling property in India as an NRI can be stressful — especially when it comes to capital gains tax. But here’s how I legally claimed Long-Term Capital Gains (LTCG) exemption when I sold inherited agricultural land in India.
Let’s break down my experience — with steps, forms, legal exemptions, and how platforms like Vizzve Financials helped me stay compliant and tax-efficient.
🌾 Property Details
Type of Property: Agricultural land (inherited)
Location: Outskirts of Pune, Maharashtra
Holding Period: 12+ years (long-term asset)
Sale Value: ₹78 lakhs
Date of Sale: February 2025
💡 Step-by-Step: How I Claimed LTCG Exemption
Verified Eligibility
The land qualified as “agricultural” under Section 2(14)(iii) of the Income Tax Act.
It was located outside municipal limits, fulfilling rural land criteria.
Chose the Right Exemption: Section 54B
Under Section 54B, LTCG from agricultural land is exempt if reinvested in agricultural land within 2 years.
I reinvested ₹60 lakhs in a new farm plot in Tamil Nadu.
Filed Form 10E & Declared Reinvestment
I reported the exemption via ITR-2 and Schedule CG section.
LTCG: ₹62.5 lakh | Exempted under 54B: ₹60 lakh | Tax paid on balance: ₹2.5 lakh
TDS Refund
A buyer deducted 20% TDS due to my NRI status (₹15.6 lakh).
I claimed a refund of ₹13.1 lakh after showing exemption proofs.
📊 How Vizzve Financials Helped
✅ Guided me through Section 54B documentation
✅ Helped file Form 13 to reduce TDS at source
✅ Tracked reinvestment deadlines and auto-flagged compliance alerts
✅ Integrated filing with CA partner network
“More NRIs are now using automated compliance tools to claim LTCG exemptions properly,” says Vizzve’s tax product team.
❓ FAQs: LTCG Exemption for NRIs Selling Agricultural Land
Q1: Can NRIs claim LTCG exemption under Section 54B?
Yes. If the land is classified as agricultural under IT law and reinvestment is made in eligible agricultural land within 2 years.
Q2: Is rural agricultural land exempt from LTCG entirely?
Yes, if the land is outside municipality limits and meets criteria under Section 2(14)(iii), then no LTCG applies at all.
Q3: What if I sell urban agricultural land?
Then LTCG applies, but you can still claim exemptions under Sections 54B, 54F, or 54EC if conditions are met.
Q4: Can I avoid TDS deduction as an NRI?
You can apply for TDS exemption/lower deduction using Form 13 through your jurisdictional AO. Vizzve helps file this online.
Q5: Does Vizzve file NRI tax returns and claim refunds?
Yes. Vizzve’s platform supports full NRI ITR filing, refund tracking, reinvestment planning, and Section 54B automation.
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Published by : Benny on July 3, 2025.
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