Capital Gains - Please clarify

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(Querist)
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02 March 2011 Hi

I sold a house property on April 2010.The entire capital gain of Rs 30 lakhs was deposited under the capital gains account scheme in june 2010.However i had withdrwn the entire amount in Dec 2010 for the purpose of construction of house property( for claiming exemption u/s 54)

i had spent only 8 laksh of the amount withdrawn till mArch 2011.However the entire construction will be over in Dec 2011 and i would have used the entire balance amount that time.

So for the asssement year 2011-12, would i be exempt from tax or should i pay tax on the unutilised amount.

Kindly please clarify

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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02 March 2011

Utilization of Amount withdrawn

Amount drawn from Account has to be utilized within 60 days from the date of such withdrawal for the purpose mentioned in the relevant sections. Unutilized amount should be re-deposited in Account immediately. Non-compliance of this rule will render the depositor to lose exemptions under relevant section.

So either show the utilisation of entire amount right now even by paying in advance or redeposit the amount.

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