Long Term Capital Gains Tax

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vinod kumar (Querist)
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04 August 2010 A had sold a property after holding it for more than 36 months. the capital gains was computed according to index cost . the entire capital gains amount was kept in fixed deposit in a nationalized bank.now 36 months has elapsed without A reinvesting the amount in another property.what will be the percentage of tax he has to pay on his capital gains since he doesn't want to reinvest the money.
Thanks in advance. Vinod.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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04 August 2010 Since the deposit has not been utilised for any of the exemption u/s 54 the same would be taxed now.

The provisions states as under"
Provided that if the amount deposited under this sub-section is not utilised wholly or partly for the purchase or construction of the new asset within the period specified in sub-section (1), then,—

(i) the amount not so utilised shall be charged under section 45 as the income of the previous year in which the period of three years from the date of the transfer of the original asset expires; and

(ii) the assessee shall be entitled to withdraw such amount in accordance with the scheme aforesaid.

Same tax liable to be paid as was to be paid earlier.

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