An assessee gets property through partition from joint family because it is an ancestral propery, upto this there is
a exemption available for getting that property. Now, the assessee transfers that property to another party for consideration
of Rs.15 lacs.
1.Assessee wants to invest in urban agricultural land, can he avail sec.54B for exemption?
2.If not ,what is the suitable plan for the assessee to invest the net consideration.
for availing exemption u/s 54B, capital gains arising from the transfer of land , the assessee r his parents should use the land for agaricultural purposes for a period of two years, immediately preceding the date of transfer.
on transfer of such capital asset, the assesse should purchase another land for agricultural purpose within 2years from the date of such transfer.
As said by Mr.Srinivas Murthy the said net consideration arising on the transfer of the property( original capital assest) should be used for the purchase of any land used for agricultural purposes provided it should be purchased within a period of 2years after the date of transfer og the original capital assest.
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