capital gain

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CA Hemant T Dewani (Querist)
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13 February 2008 a person sold a land which is beyoud eight km.from muncipal area and population is less than 10000 as per last cencus but land is uncultivate in 7x12 abstract. whether full exemption is availabal u/s 54B of the income tax act

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R.V.RAO

R.V.RAO (Expert)
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13 February 2008 sorry no.
the basic condition for exemption under sec 54 B is the use of the land atleast for two years for agriculture purpose by the assessee or his / her parents , BESIDES PURCHASE OF ANOTHER LAND FOR AGRI. PURPOSE WITHIN TWO YEARS FROM DATE OF SUCH TRANSFER.
R.V.RAO