Capital gain

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GOPAL LAL GUPTA (Querist)
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15 October 2012 One of my client has sold the urban agricultual land on 01.10.2010 for Rs. 5.00 lac and have invested the sale proceed in purchases of urban agricultural land of Rs. 4.00 lac on 15.11.2011 and have also constructed his residential house for Rs. 1.00 lac.

Assessee has not filed his return of income as he is agriculturist.

My Query is

1. Whether he is eligible for deduction U/s 54B looking to that the period of filling of return u/s 139 has been crossed before making the investment in new agricultural land.

2. Whether he can claim exemption U/s 54F simultaniusly i.e. dedution U/s 54B and balance in 54F.

Amol S Joglekar

Amol S Joglekar (Expert)
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15 October 2012 54B is available if the land is used for "agricultural purposes" by the assesse or his/her parents at least for a period of 01/10/2008 to 30/09/2010. 54F can be availed subject to other conditions in the section viz no other house in the name of assess, construction is completed before 01/10/2013.

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GOPAL LAL GUPTA

GOPAL LAL GUPTA (Querist)
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16 October 2012 Sir My querry is regarding date of investment. As the new agricultural land is purchased after the date of filling of return U/s 139(1). Whether still he can get avail the benefit U/s 54B as he has not filed the return. Please Provide some case law on the issue.

Amol S Joglekar

Amol S Joglekar (Expert)
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17 October 2012 Why case law is needed? The Act is very clear. If you have not filed the return before due date, does not stop you from investing in capital gain exepmtions.

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