Capital gain
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
07 September 2013
Dear Sirs,
One of my client sold his property(resi-house) in FY 2010-11 for 1 crore. He received 2 lakh cash as advance from buyer. Balance 98 lakhs have been deposited in HDFC bank(not in the CAPITAL GAIN SCHEME). His capital gain comes around 70 lakhs. He invested more than 70 lakhs by way of purchasing two residential house with in the FY 2010- 11, 2011-12.
My question is that should the sale proceeds invest in that Capital gain Scheme to enjoy the exemption u/s 54 compulsorily..???
If not invested in that Capital gain scheme what action can be taken by Dept.??
One of my client sold his property(resi-house) in FY 2010-11 for 1 crore. He received 2 lakh cash as advance from buyer. Balance 98 lakhs have been deposited in HDFC bank(not in the CAPITAL GAIN SCHEME). His capital gain comes around 70 lakhs. He invested more than 70 lakhs by way of purchasing two residential house with in the FY 2010- 11, 2011-12.
My question is that should the sale proceeds invest in that Capital gain Scheme to enjoy the exemption u/s 54 compulsorily..???
If not invested in that Capital gain scheme what action can be taken by Dept.??
07 September 2013
Where the amount of capital gain is not so utilized for the purchase or construction of a new residential house before the due date of furnishing of the return of income, it shall be deposited by him on or before the due date in an account with a public sector bank in accordance with the Capital Gain Account Scheme, 1988. The amount already utilized on the new house together with the amount deposited shall be deemed to be the amount utilized for the purchase of new house under section 54.
If the amount deposited is not utilised for the purpose of purchase or construction of new house within the stipulated period, then the amount not so utilised will be treated as long term capital gain of the previous year in which the period of three years expires.
In such case the assessee is entitled to withdraw the amount from the bank.
Long Term Capital Gain Exemption for Investment in Certain Bonds (Section 54EC)
This exemption is is available an individual, HUF, company or any other person who invests the long term capital gain, within 6 months of a the transfer of the capital asset, in any of the specified bond (issued on or after April 1, 2006) redeemable after 3 years:
National Highway Authority of India (NHAI), or
Rural Electrification Corporation Ltd. (REC)
There is a limit of Rs. 50 lakh on the investments on or after April 1, 2007
If the amount deposited is not utilised for the purpose of purchase or construction of new house within the stipulated period, then the amount not so utilised will be treated as long term capital gain of the previous year in which the period of three years expires.
In such case the assessee is entitled to withdraw the amount from the bank.
Long Term Capital Gain Exemption for Investment in Certain Bonds (Section 54EC)
This exemption is is available an individual, HUF, company or any other person who invests the long term capital gain, within 6 months of a the transfer of the capital asset, in any of the specified bond (issued on or after April 1, 2006) redeemable after 3 years:
National Highway Authority of India (NHAI), or
Rural Electrification Corporation Ltd. (REC)
There is a limit of Rs. 50 lakh on the investments on or after April 1, 2007
08 September 2013
Just to add on, that if not invested within time, then department will do assessment for that fy, assuming no exemption was their
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- Type of Capital Gain
- Booth for sales promotion
- F & O PROFIT REPORTING FOR AY 2026-27
- VALUATION OF PRIVATE LIMITED COMPANY SHARES
- Accounting with Claude
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
