Purchase agriculture land A a from our past agriculture savings after we sold land B both land is different we have used for many years as a agriculture purpose only and we have its agriculture bills to show. purchase land A date 5/7/11, 29/7/11, 30/7/11 (have used this land for agriculture use more than 2 years) from past agriculture income savings. Sold land B date 5/9/11 (have used this land for agriculture even till now) 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 A early before i sold my land B. as we sold land B for 35 lacks and already paid tax 9.24l Lakh and 7.34l (vivad se vishvas scheme) on same total 16.58 lacks tax we paid in this case 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. now i received order for not getting exemption under 54b and they release order. i now i have to go for a appeal earlier in order they has given exemption in vivad to vishvas scheme. i mean in earlier order will i get exemption in this case ? how should i proceed in appeal can you plz help me if there is any chance where we can save 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 to 2 month can i get relief in this plz help me to solve my query before all this new order query we have already opt for vivad to vishvas scheme and also paid 7.34lakh and received form 5 from them still they have re open a case and in that we got relief from interest and not in new order judgement they asking for 16L interest to pay.. we opt for V2V for getting releaf and now again they charge interest what IT commission is trying to do Plz Explain in detail
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You need to engage local CA for filing appeal against order denying you benefit of exemption under section 54 B
2) take the defence that land was used for agriculture for over 2 years and entitled to be for of exemption from capital gains
3) that demand for interest of 16 lakhs is misconceived and unsustainable in law
You need to contest the same and appeal If favourable order is not granted to you
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.
Is any penalty impose on you ? No tax pays on purchase of land below 50 lacs. And only 1% TDS above 50 lacs.
Show notice
Income Tax Act is available on Capital Gains on the sale of one agricultural land and purchase or construction of another agricultural land
plz Guide in detail with reason sir plz awaiting for your swift and positive response as i am new to this field i understand hiring ca will finish all thing but here 90% CA are corrupted so they don't provide proper advise they just say pay the tax u got plz help with step by step solution of my question as below Purchase agriculture land A a from our past agriculture savings after we sold land B both land is different we have used for many years as a agriculture purpose only and we have its agriculture bills to show. purchase land A date 5/7/11, 29/7/11, 30/7/11 (have used this land for agriculture use more than 2 years) from past agriculture income savings. Sold land B date 5/9/11 (have used this land for agriculture even till now) 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 A early before i sold my land B. as we sold land B for 35 lacks and already paid tax 9.24l Lakh and 7.34l (vivad se vishvas scheme) on same total 16.58 lacks tax we paid in this case 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. now i received order for not getting exemption under 54b and they release order. i now i have to go for a appeal earlier in order they has given exemption in vivad to vishvas scheme. i mean in earlier order will i get exemption in this case ? how should i proceed in appeal can you plz help me if there is any chance where we can save 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 to 2 month can i get relief in this plz help me to solve my query before all this new order query we have already opt for vivad to vishvas scheme and also paid 7.34lakh and received form 5 from them still they have re open a case and in that we got relief from interest and not in new order judgement
It is necessary to peruse order passed to advice
2) file appeal against impugned order
3) enclose certified copy of order
4) take the plea that you are entitled to exemption as all conditions to avail exemption have been satisfied
5) that farming was been done on said land and sold after period of 2 years
Dear client,
It seems that you have sold a land B and used the sale proceeds to purchase land A, both of which were used for agricultural purposes. You have used agricultural income savings to purchase land A and have been farming on it for more than 2 years. However, you have received an order denying exemption under section 54B of the Income Tax Act, which provides for exemption on capital gains arising from the transfer of land used for agricultural purposes, due to a variation of one to two months in the period of two years of farming on land A.
In this situation, you may need to file an appeal against the order denying exemption under section 54B. You can approach a tax consultant or a lawyer to help you with the appeal process. However, it is important to note that the success of the appeal may depend on several factors such as the specific facts of the case, the evidence available, and the interpretation of the relevant tax laws.
Regarding the Vivad se Vishwas Scheme, it is a scheme introduced by the Government of India to provide relief to taxpayers who have disputes with the income tax department. It allows taxpayers to settle their disputes by paying the disputed tax amount with certain concessions. If you have already opted for this scheme and paid the disputed tax amount, you may have to check with the concerned authorities regarding the status of your case and the applicability of the scheme in your case.
Overall, it is advisable to seek professional help from a tax consultant or a lawyer to understand your options and to proceed with the appeal process.
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.
Therefore you collect the documentary evidences on all the above subjects and challenge the notice sent to you by the authority concerned.
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 Vivad Se Vishwas scheme provides for settlement of disputed tax, disputed interests, disputed penalty or disputed fees in relation to an assessment or reassessment order on payment of 100 per cent of the disputed tax and 25 per cent of the disputed penalty or interest or fee.
Which appeals are covered under the Vivad se Vishwas? Ans: Appeals pending before the appellate forum [Commissioner (Appeals), Income Tax Appellate Tribunal (1TAT), High Court or Supreme Court], and writ petitions pending before High Court (HC) or Supreme Court (SC) or special leave petitions (SLPs) pending before SC as on the 31st March 2023
1) You are saying 90% CA's are corrupt so please approach those 10% CA's who are genuine and committed to their profession. Just saying that CA's are corrupt is not right.
2) You need to file appeal against Income Tax Order and challenge it. Hiring a CA will be helpful in your case as they have vast knowledge related to taxation. A lawyer won't be of much help.
3) So please consult a CA and file an appeal.
The above fact will help you in further proceedings