AN ASSESSEE SOLD AGRICULTURE LAND with in 8 km of local limit of municipality so as per sec 2(14) not exempt AND PURCHASED AGRICULTURE LAND ON HIS SON’S NAME DUE TO UNAVOIDABLE FAMILY MATTER
CAN HE CLAIM EXEMPTION U/S 54B
HE CAN NOT CHANGE THE PURCHASE REGISTRY AGREEMENT DUE TO FAMILY MATTER
IS THERE ANY OTHER WAY TO SAVE CAPITAL GAIN ON ABOVE CASE
The capital gain tax is not levied on transfer of agriculture land which is not situated inside / within periphery of 8 km of municipality limits of notified areas / cities with population of 10000.
Under the provisions contained in the Income-tax Act 1961, capital gains tax is payable whenever profit is derived on selling a capital asset. However, agricultural land in India under certain facts and circumstances is not treated as capital asset as per the definition contained in section 2(14) of the Income-tax Act 1961.
The simple theme is if an item which is sold is not considered as a capital asset. In that situation any gain arising there from will not be subjected to income-tax.
So in your case no question of capital gains & you can utilize that money in any way
Just get ask your Tehsildar to issue a certificate that your lands falls under agriculture land area and you won't face any problem in future.
Yes I Agree with Sourabh Goyal...........
agreed with Saurabh 
CAclubindia
