whether deduction of section 54 is available on short term capital gain arising on transfer of urban agriculture land?
As section specifies that agriculture land must be used by the assessee for agriculture land for 2 year immediately prceeding the date of transfer but did not mention that assest must be owned by assessee for these 2 years.
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applicability of section 54B
Replies (4)
Exemption under section 54B can be claimed in respect of capital gains arising on transfer of capital asset, being agricultural land (may be long-term or short-term).
This benefit is available only to an individual or a HUF. The land should be used for agricultural purpose at least for two years.
From: incometaxindia/Tutorials/Exemption/under/54B
thank you
If your agricultural land was compulsorily acquired, capital gain may be exempt u/s 10(37).
1.54B is available to Short Term Capital Asset too....as it says land must be used for 2yrs, Asset becomes Short Term when used for 24months or less.
2.54B can be applied only when a Urban Agricultural Land is transfered (as rural agricultural land is not a capital asset).
3.54B can be applied not only to persons who does agricultural activities by himself on their land but even to those who give their land to someone for agriculture. (I.e, leased to others for only agricultural activity)
Pls revert back if u have not understood or else have few doubts.
can also mail me @ ca.o.navaneeth @ gmail.com
2.54B can be applied only when a Urban Agricultural Land is transfered (as rural agricultural land is not a capital asset).
3.54B can be applied not only to persons who does agricultural activities by himself on their land but even to those who give their land to someone for agriculture. (I.e, leased to others for only agricultural activity)
Pls revert back if u have not understood or else have few doubts.
can also mail me @ ca.o.navaneeth @ gmail.com
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