Section 54B - Capital Gain on transfer of Agriculture Land

Описание: Exemption of Capital Gain
Basic conditions for availing exemption under Section 54B of Income Tax Act
Following conditions should be satisfied to claim the benefit of section 54B.

The benefit of section 54B is available only to an individual or a HUF
1. The asset transferred should be agricultural land. The land may be a long-term capital asset or short-term capital asset.
2. The agricultural land should be used by the individual or his parents for agricultural purpose at least for a period of two years immediately preceding the date of transfer. In case of HUF the land should be used by any member of HUF.
3. Within a period of two years from the date of transfer of old land the taxpayer should acquire another agricultural land. In case of compulsory acquisition the period of acquisition of new agricultural land will be determined from the date of receipt of compensation. However, as per section 10(37), no capital gain would be chargeable to tax in case of an individual or HUF if agricultural land is compulsorily acquired under any law and the consideration of which is approved by the Central Government or RBI and received on or after 01-04-2004.

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