11 December 2009
Assessee sold residential house.Capital gains of Rs.60 lkahs made on sale of house.He booked one flat within the time limit prescribed ( building under construction).He has to pay consideration in instalement.Out of Rs.60 lakhs , he has ppaid Rs.10 lakhs towards new flat.Balance to be paid in two years instalement. Whether he is eligible for exmeption of capital gains.Whether ti keep balance amount of capital gains in deposit account with Govt. before filing return of income.Whether any permission required at the time of withdrwal of money froom this account.
11 December 2009
Eligible for exemption under section 54 provided the other conditions mentioned therein are fulfilled. The balance amount, as stated in the query, has necessarily to be deposited in Capital Gains Account Scheme,1988 before the due date of furnishing the return of income. For withdrawing the money from such bank deposit application in form C/D has to be given to the bank. Further for closing the said deposit account application has to be made, with the approval of the Assessing Officer, to the bank in Form G.
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