Capital Gain

Suresh Sharma (Manager Finance & Admin.)   (42 Points)

15 July 2010  

Hi Friends

Could anyone help me about the capital gain calculation in case of sale and purchase of agriculture land :-

  1. A land lord sold his agriculture land withing the 8 kM of MC limits
  2. Against the Sale agreement he received 25% amount (Rs. 2,50,000/-) as agreement money in the m/o may 2007 (FY 2007-08)
  3. he then invested this amount immidiately for purchase of new agriculture for  land Rs. 2,50,000/- and got the purchae deed executed in his name
  4. After 12 months period he received the balance 75% amount (Rs. 7,50,000/-) in the m/o April, 2008 (FY-2008-09) and executed the deed of this entire land in the name of Purchaser
  5. and   again invested this 75% amount ( 7,50,000/-) in new agriculture land in the m/o may 2008.
  6. IS THE ADVANCE MONEY (RS. 2,50,000/-) INVESTED IN AGRICULTURE LAND, PRIOR TO THE DATE( OF SALE OF LAND WILL BE ALLOWED AS DEDUCTION U/S 54B ???...
    ( here 25%  land is purchased prior to the date of sale and in different Financial year)