Interest u/s 234B

This query is : Resolved

sumit bhartia (Querist)
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24 July 2011 i have earned Rs. 2000000.00 from sale of property in sept 2010

i have invested Rs. 1500000.00 in new property in March 2011

and paying Tax on the remaining amount
but do i have to pay interest u/s 234B or 234 C on it

sumit

Nitin Lakhmani

Nitin Lakhmani (Expert)
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24 July 2011 In your case u have to pay interest on Capital Gain amount(Income) which remains uninvested and lieng with you.

You have to pay tax only on Capital Gain amount wchich you have earned.

If New investment exceeds the Capital gain then ther will not be any taxation u/s 54 or else if u want to claim deduction under 54F then you need to invest whole amount.