Purchase agriculture land from our past agriculture savings before we sold land purchase land date 5/9/11 Sold land date 5/7/11, 29/7/11, 30/7/11 my intent is a farming only from many years i file return on agriculture but i was getting best land in price and fertility so i bought land early before i sold my land. now i received order for not getting exemption under 54b and they release order. i now i have to go for a appeal is there any chance to get exemption under 54b as my main intent is only farming not any other thing and the variation is just only one month can i get relief in this plz help me to solve my query
it is necessary to peruse order to advice
2) 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.
purchased land should me used for agricultural purpose at least for two years. or sold land sold land was already use for agriculture use from many years will i get exemption in this case ? how should i proceed in apply can you plz help me if there is any chance where we can save as we sold land for 35 lacks and already paid tax 9Land 7.34l on same land under our case procedings in this case we are loosing our land as well as we are not getting any benifit as a farmer plz guide us in this.
you have to in your appeal take the plea that land was used for agriculture for more than 2 years
contact a local CA for filing appeal
purchase land date 5/9/11 Sold land date 5/7/11, 29/7/11, 30/7/11 which land we have to plea that land was used for agriculture for more than 2 years purchased land or sold land plz explain
sold land was used for agriculture for more than 2 years
Yes you can try for exemption in above case
Dear client,
Based on the information provided, it appears that you have purchased agricultural land before selling your previous agricultural land. You intend to use the newly purchased land for farming purposes, and you have filed tax returns for agricultural income in the past. However, you have been denied exemption under section 54B of the Income Tax Act, 1961, which provides exemption on the capital gains arising from the sale of agricultural land if the sale proceeds are invested in another agricultural land within a specified period.
To claim exemption under section 54B, the newly purchased land must be used for agricultural purposes for at least two years from the date of its acquisition. Since you have sold your previous agricultural land within a few months of purchasing the new land, you may not be eligible for exemption under this section.
In order to appeal against the order denying exemption, you may need to provide additional evidence to establish that your intent was to use the newly purchased land for agricultural purposes only. This may include proof of your past agricultural income, evidence of the fertility and suitability of the new land for farming, and any other relevant documents.
It is recommended that you consult with a qualified tax professional or a lawyer to understand your options and to prepare a strong case for your appeal. They can also guide you on the specific procedures and requirements for filing an appeal in your jurisdiction.
Section 54B gives relief from such a hardship. Section 54B gives relief to a taxpayer who sells his agricultural land and from the sale proceeds he acquires another agricultural land.
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
The asset transferred should be agricultural land.
The land may be a long-term capital asset or short-term capital asset.
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.
Within a period of two years from the date of transfer of old land the taxpayer should acquire another agricultural land.
If you satisfy the above conditions, you can claim the benefit of section 54B by purchasing another agricultural land within the time-limit specified under section 54B.
However since you have received notice from the IT department, you approach an advocate and first issue a reply notice denying their allegations and after that you can challenge the order on merits, if you have any.
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
The asset transferred should be agricultural land.
The land may be a long-term capital asset or short-term capital asset.
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.
Within a period of two years from the date of transfer of old land the taxpayer should acquire another agricultural land.
Exemption under section 54B can be claimed in respect of capital gains arising on transfer of capital asset, being agricultural land. Exemption under section 54B will be lower of following :
Amount of capital gains arising on transfer of agricultural land; or
Investment in new agricultural land
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
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. In this case, all the conditions of section 54B
were satisfied.
Yes you will get exemption
