Deduction U/s 54B

 

Deduction U/s 54B

Deduction in respect for Sale of agriculture land in urban area. 

Deduction allowed to-: An Individual & H.U.F.

Deduction allowed from Long term capital gain on agriculture land in 

urban area. 

Condition for deduction-: 

• Land must be used at least 2 year for agriculture purpose before 

the due date of sale.

• Deduction allowed if he invest in new agriculture land immediately 

preceding within 1 year or after the date of sale within 2 year.

Amount of Deduction-:

• Deposit Scheme-: Amount of capital must be deposit under Capital 

gain deposit scheme 1988with in nationalized band before the due 

date of filling income tax return if assesses not invested in new house 

before the filling of income tax return.

• Unused Amount-: Unused amount after the time limit of amount 

under capital gain deposit scheme fully taxable in the year of 

duration complete.

• Forfeiture of Deduction-: deduction in respect of purchase of new 

house & construction of new house fully taxable, if new house sale 

within 3 year from the date of accusation.