30 August 2010
explain - " in case agriculture land transfered in spesified area the exemption can be claim u/s 54b by purchasing new land within 2 year after the such transfer." Q1-can we purchase a land in any area other than specified area.
30 August 2010
The Section never used the word of "Specified Area" with regard to Agricultural land . For ur reference the section is reproduced below.
U/s 54B. Subject to the provisions of sub-section (2), where the capital gain arises from the transfer of a capital asset being land which, in the two years immediately preceding the date on which the transfer took place, was being used by the assessee or a parent of his for agricultural purposes , and the assessee has, within a period of two years after that date, purchased any other land for being used for agricultural purposes, then, instead of the capital gain being charged to income-tax as income of the previous year in which the transfer took place, it shall be dealt with in accordance with the provisions of this section,
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