Capital gain section 54

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Querist : Anonymous

Querist : Anonymous (Querist)

24 January 2012 I have sold my flat and registry was done on 31-03-2011 However more than 80% amount recd. after 31-03-2011 i.e. in may and july 2011.

My query is what AY is count for the transfer of property

I could not make full investment up to 31-07-2011 i.e filling date and also not dpe.. in capital gain Deposit account However subsequrntly made investment in House property in Nov. 2011.
Can I claim Deduction U/s 54 for investment made in No. 2011

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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24 January 2012 It is a sad situation. Have you made Registry on Credit Basis or just to save stamp duty money of the buyer. You will not be eligible to claim exemption. You have to pay tax on Capital gains.

CA Salman Mansoori

CA Salman Mansoori (Expert)
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24 January 2012 CORRECTLY STATED YOU HAVE TO PAY CAPITAL GAINS.. REASON BECOZ OF THE WORDING OF THE ACT.....

"Deposit Scheme under Section 54. 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".

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