Capital gain account scheme fd broken and invested in house

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Ganu (Querist)
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16 January 2012 My Client has sold land in the FY 09-10 and invested the capital gain amount in the Capital Gain FD scheme. Now he has broken the FD and Purchased land against it. So do i have to show the fd withdrawal and investment in Land in the Computation of Tax?????

Reply thanks in Advance

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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16 January 2012 I hope that following the purchase of land, your client will soon start construction of a residential house on the land to make the claim of exemption even stronger.
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At the time of claiming exemption we show the investment in Capital Gain Account as a "New Asset". Department relies upon the assesssee in this regard. It can further verify, whether the amount withdrawn has been utilised for meeting the objective.
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So, once it has been claimed as deduction and the stipulated conditions are followed in continuity, in my view, there is no further specific requirement to show the same in the computation of income.
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Ganu

Ganu (Querist)
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17 January 2012 Thanks A lot sir. Your reply is helpful to me.

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