How to save tax on sale of agriculture land?

I own agricultural land for over the last 30 years. How can I save tax on the sale of the land? Also, can I benefit from home purchase? - Rajeswara Rao, Mahbubnagar As per the provisions of the Income Tax Act, 1961, agricultural land is not treated as a capital asset unless it fulfills the following conditions: (a) The land is situated in any area under a municipality or cantonment board with a population of less than 10,000 b) The land is within a prescribed distance (2-8 Km) from a Municipal town or Cantonment Board (10,000- 10 lakh). It is not clear whether the land in question qualifies for a capital asset or not as full details are not available. If agricultural land does not meet the above conditions then it is not treated as a capital asset. Also, profits arising out of sale of the land are not subjected to tax. If agricultural land qualifies as a capital asset, it is treated as a long-term capital asset (LTCA). The income from sale of such agricultural land is subject to Long Term Capital Gain (LTCG) if the period of holding such land is more than 24 months. The following deductions can then be claimed from LTCG:

Section 54B

If LTCG arise on transfer of land used for agricultural purposes, if any other land is acquired for agricultural purposes within two years from the date of sale, proportionate reduction in LTGC is applicable to that extent. * If the LTCG is not invested for the purchase of new land till the date of filing return under Section 139, such amount can be deposited as specified capital in Capital Gain Account Scheme (CGAS) in authorized banks before the due date of filing tax return and get the prescribed deduction.

Section 54EC

LTCG should be invested in notified bonds within 6 months from the date of conversion to LTCA. The amount so invested may be eligible for exemption up to a maximum of Rs.50 lakhs in the year in which the LTCA is sold or in the subsequent financial year.

Section 54F

Exemption 54F is applicable to LTCG only on a pro rata basis if the net proceeds from sale of agricultural land is used to purchase another property or construct a house within a specified period, if the LTCA owns only one house in addition to the house being newly built or constructed at the time of sale, and only a part of the said net proceeds is invested.