26 January 2015
Dear sir Our client had sale a agriculture land in mar 2011 and invested cap gain amt in may 2011 in new agri land but he has not filed return by treating rural agri land and case was opened in air schedule and we submitt return after calling by deptt only mentioned intt income but now we find that are urban land .pls give suggetion for claiming deduction under scrutiny case are carrying under scuritney
26 January 2015
Exemption under section 54B can only be claimed by an individual. The following conditions are satisfied capital gain exemption u/s 54B can be claimed. 1) You client can claim this exemption only if urban agricultural land transferred is used by you client or your client's parents for agricultural purpose during 2 years immediately before the date of transfer of such agricultural land. And 2) You client have purchased another agricultural land whether rural or urban to be used for agricultural purpose within 2 years from the date of transfer of original agricultural land. The amount of exemption is equal to the amount invested in the purchase of new agricultural land subject to the amount of capital gain.
26 January 2015
The land sold by your client is if Urban Agriculture Land then uou have to first make a computation in which you have to compute the capital gains on transfer of such Urban Agriculture Land. . Claim the exemption U/s 54B. If the cost of new land is more than the capital gains, it will be exempt. . Also include Agriculture income in the computation. .
CAclubindia
