Capital gain

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babita Matta (Querist)
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05 February 2013 Assessee is an individual, who has sold a residential house on 14.06.2010 i.e during AY 2011-12 which was purchased in FY 2000-01. Out of this sale, Long term capital gain of Rs. 30 lacs was arised. He has deposited Rs. 30 lacs in Capital Gain account scheme before due date of filing of return of income related to AY 2011-12 and claimed the exemption under section 54 of the Income tax act in the Return of income for AY 2011-12. He booked a flat for which the payments are to be made in instalments. Amount of Rs. 20 lacs has been paid to the Builder out of Rs. 30 lacs and Amount of Rs. 10 lacs is still remaining in Capital Gain account scheme as Builder has not demanded further instalments till date. Now as per provisions of Income tax act, unutilized amount in Capital Gain Account Scheme is taxable in the previous year in which the period of three years from the date of transfer of the original assets expires i.e. AY 14-15.
My query is whether this unutilized amount is still taxable as this is ultimately payable to the Builder against booking of flat.

Amol S Joglekar

Amol S Joglekar (Expert)
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05 February 2013 If you are sure of not paying this amount to builder before 31/03/2014, then go ahead. Waiting for another year or so may not be fruitful in that case.

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