Ganesh
(Final)
(87 Points)
Replied 05 February 2010
Yes
there is provision for exemtion for long term capital gain only
Anumanchipalli Sathikonda
(Tax Consultant)
(1349 Points)
Replied 05 February 2010
Mr.Nikunj and Mr.Dhiroj
On complying the provisions of section 54B you can avail exemption.
Best Wishes
Sathikonda
Ganesh
(Final)
(87 Points)
Replied 05 February 2010
(ii) Capital Gains on transfer of agricultural land [Section 54B]
This section provides for exemption from tax in respect of capital gains arising from the
transfer of any land situated in municipal or other urban areas in certain cases.
In order to avail of this exemption (i) the capital asset being land situated within the municipal
or other urban areas, must have been used by the assessee or his parents for agricultural
purpose during the two years immediately preceding the date of its transfer; and (ii) the
assessee must acquire, within a period of two years from the date of transfer, any other land
in the same or other area for being used by him or his parent for agricultural purpose.
This exemption corresponds to the exemption in respect of capital gains arising from the
transfer of residential house available under section 55 and is intended to remove the
hardship that may be caused to bona fide agriculturists who have to sell or otherwise transfer
agricultural land within such limits. The other provisions regarding the treatment of capital
gains arising in respect of the new asset or its transfer within a period of three years of its
purchase are similar to those discussed earlier under section 45.
The note appended to section 54 regarding Capital Gains Accounts Scheme, 1988 is
applicable to section 54B also. Sub-section (2) of section 54B deals with such a scheme.
C.Balaji
(Learner)
(1867 Points)
Replied 05 February 2010
Mr.Nikunj..
you can go for 54F, 54EC and 54B....
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