12 March 2011
Assessee had recd. Rs. 18L for the sale of shares (long terms capital asset)during f.y. 10-11. To claim the exemption u/s 54f, he needs to purchase a new residential house within 2 years or construct within 3 years.
Now, the assessee for the time being wants to deposit this amount to the Capital Gain Account so that he can aftersome time purchase a new house. In that also, he wants that he does not deposit the amount before the return date.
Kindly let me know is that possible that he makes a DD of the same amount from his bank in favour of the person to whom he had sold the shares, keeps the DD with him and on 1st april cancels the DD again. In this way the etry of Rs. 18L will not pertain to fy 10-11. It will appear in fy 11-12
15 March 2011
Instead of giving such kind of advice why not you first check whether the particular transaction covered U/s 10(38) or not. since As per sec.10(38)long term capital gain on euity sahare or equity oriented mutual fund are exempt from long term capital gain.
But the shares are not of a listed company and STT is also not appl. So section 10(38) cannot be used. Kindly advice whether the procedure stated in previous query can solve the purpose?
CAclubindia
