Sir,

Can Capital gain arising on transfer of  urban agricultural land  u/s 54B  by assessee be invested in the name of spouse or son along with daughter in law 

Thanks

Rajeev Behal

Dear Rajeev,

Investment in the name of son and grandson, it was held, does not satisfy the requirement under section 54B. [Jai Narayan vs. ITO (2008) 306 ITR 335 (P&H)]

Kind Regards
TaxReply.com

In the instant case assessee had made investment in purchase of an agricultural land and residential flat in name of her two married daughters. While computing long-term capital gain she claimed exemption in respect of such properties under sections 54B and 54F.

The AO and as well as Tribunal denied the deduction under Sections 54F and 54B. The learned Counsel submits that his client was entitled to benefit of sections 54B and 54F as the intention of the legislature was to extend the benefit to the members of the family which includes married daughters. The aggrieved assessee filed the instant appeal.

The High Court denies to grant benefit of Sections 54F and 54B to assessee on purchase of properties in name of her married daughters as it did not find any infirmity in the order of Tribunal.

GANTAVIJAYA LAKSHMI V. ITO (2015) 54 taxmann.com 301 (Andhra Pradesh)

- avoid it, they can be joint holders , but it shuold not be in their sole names

Exemption to Senior Citizen

by Sajal on Tuesday, February 17, 2015 at 10:28 AM

Sir, is there any provision/case law that allows exemption under Section 54 to a senior citizen if the Full Value of Consideration received is invested in an eligible asset by the children of such senior citizen, provided all other conditions of the section are complied with???