How to claim of exemption under section 54b

This query is : Resolved

Ganu (Querist)
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21 June 2012 Sir,
My client has sold an agricultural land on 20/06/11. The capital gain calculated is Rs.495000/-. In the Act, it is written that exemption can be claimed if reinvesting in other agricultural land within a period of two years from the date of Sale.

So, Can I claim exemption amortising the exemption amount by investing Rs.300000/- in AY 2012-13 and Balance in AY 2013-14??

Please guide me.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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22 June 2012 Section 54B also provides that if the amount is not invested ON or BEFORE the DUE DATE of filing the return, the amount shall be deposited in a Capital Gain Account Scheme with a nationalised bank.

Accordingly, to avail exemption u/s 54B the amount must either be invested in agricultural land or deposited in Capital Gain Account on or before 31.07.2012.

If the assessee fails to do so, he will NOT be eligible for exemption.

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