Capital gain account scheme

This query is : Resolved

CA.S.KARTHIKEYAN

CA.S.KARTHIKEYAN (Querist)
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07 November 2012 Mr X had a house property was sold on 24.06.2008 for Rs.684000/-. The assesses has invested the sale consideration of Rs.684000/- on capital gain account scheme within due date 139 (1) .as per sec 54 Construction within 3 Years after date of transfer ..Mr X had start construction spent an amount equal to ten lakhs as on 15.4.2011 from own funds and not withdraw the amount from cGAS ..if he withdrawal of rs 6840000/- from CGAS made on 31.8.2012 means the amount is taxable or not ?construction has been started before 3 years but construction not completed yet .

Gayathri Devi

Gayathri Devi (Expert)
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07 November 2012 The purpose of capital gain account scheme is to invest in the new capital asset. But for construction purpose the amount of deposit was not withdrawn. The assessee cant claim the deduction u/s 54 for this purpose because the amount had spent from his own savings. as well as the assessee cant say taht from out of his deposits because if he withdrawn then it will be debited in his bank acccount. Hence he cant able to claim the deduction u/s 54 of the Income Tax act 1961