Resale of house built under sec 54 exemption

This query is : Resolved

Abhijit Kolte (Querist)
Follow

18 December 2018 I have run into the following problem.

Oct 2014: Original house sold for long term capital gain of 19,00,000 and Amount put in a Capital Gain Account Scheme account.
Jul 2015: ITR2 filed claiming (or showing) exemption under sec 54
Mar 2017: bought land.
Sep 2017: Completed construction of house. Total cost, including land, : 29,00,000 (19,00,000 from CGAS account + 10,00,000 from other sources)
Jul 2018: ITR1 filed without any reference to the newly built house.
Aug 2018: ITR1 accepted and intimation under sec 143(1) issued.

CGAS account has still not been closed. (Closure requires permission from A.O. and I have not yet applied for that)
I want to sell the new house now for 45,00,000 (ie. within 3 years from date of construction)

What will be my tax liability?
What is the last date to close the CGAS account?

The ITRs were prepared and filed by a tax consultant since I really dont know much about tax filing.

Abhijit Kolte

Abhijit Kolte (Querist)
Follow

19 December 2018 After reading various articles on CAclubindia I feel that my tax consultant has filed wrong ITR for F.Y.2017-18. He should have filed ITR2 instead of ITR1 and shown the capital gain utilisation in schedule CG of ITR2. And I am still confused about the last date for the closure of CGAS account.

Could an expert please go through my problem so that I can confront my tax consultant. He is confident that he is right. I think otherwise.

Also, what documents are required to be submitted along with application to close a Capital Gain Account Scheme account? and how long does it normally take the A.O. to verify?

Thanks.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

27 September 2021 The last date of closure is just after 3 years from the date of original property sale. The time delay due to obtaining permission from ITO is discounted.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now