Capital gain exemption u/s 54B for investment in another agricultural Land
54B . Capital gain on transfer of land use for agricultural purposes not to be charge in certain cases.-(1) 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 proceeding the date on which the transfer took place, was being use by the the assessee being an individual or his parent, or a Hindu undivide familyfor agricultural purposes hereinafter referre to as the original asset, and the assessee has, within a period of two years after that date, purchase any other land for being use for agricultural purposes, then, instead of the capital gain being charg to income-tax as income of the previous year in which the transfer took place, it shall be dealt with in accordance with the following provisions of this section, that is to say,-
(i) if the amount of the capital gain is greater than the cost of the land so purchase (hereinafter refers to as the new asset), the difference between the amount of the capital gain and the cost of the new asset shall be charg under section 45 as the income of the previous year; and for the purpose of computing in respect of the new asset any capital gain arising from its transfer within a period of three years of its purchase, the cost shall be nil; or
(ii) if the amount of the capital gain is equal to or less than the cost of the new asset, the capital gain shall not be charg under section 45; and for the purpose of computing in respect of the new asset any capital gain arising from its transfer within a period of three years of its purchase, the cost shall be reduce by the amount of the capital gain.
(2) The amount of the capital gain which is not utilise by the assessee. For the purchase of the new asset before the date of furnishing the return of income. Under section 139, shall be deposited by him. Before furnishing such return such deposit being made in any case. Not later than the due date applicable in the case of the assessee for furnishing the return of income. Under sub-section (1) of section 139 in an account in any such bank or institution as may be specified in. And utilised in accordance with, any scheme.
Which the Central Government may, be notification in the Official Gazette. Frame in this behalf and such return shall be accompanied by proof of such deposit. And, for the purposes of sub-section (1), the amount, if any. Already utilised by the assessee for the purchase of the new asset together. With the amount so deposite shall be deem to be the cost of the new asset:
Provide that if the amount deposite under this sub-section is not utilise wholly. Or partly for the purchase of the new asset within the period specify in sub-section (1), then.-
(i) the amount not so utilise shall be charge under section 45 as the income of the previous year in which the period of two years from the date of the transfer of the original asset expires ; and
(ii) the assessee shall be entitle to withdraw such amount in accordance with the scheme aforesaid.