The Land is certified as wet land as per the village Administrative Officer record. But my client has not cultivated or shown any agricultural income in his return. The land is situated 8 kms away from Municipal area. Population is less than 10000.
If the land is within 8 kms can i claim exemption u/s 54B
26 February 2013
No, Exemption u/s 54B Cant be Claimed. Since It Must be Used for Agriculture Purpose Since 2 Years Atlest.
But Since Your Land is Situated 8 KMS Away from Munciple Area, Its Will not be Capital Asset. and Hence No Capital Gain Tax Applies. Its Exempt Income.
Just prove That This is agriculture Land if any kind of Enquire Comes.
If Any Confusuion Left in Your mind, pls revert.
The More Info You Provide to Us, More Options You Will Get to Save/Plan the Tax.
CAclubindia
