CAPITAL GAIN

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VIKASH

CA FINAL 2ND GROUP

49 Points Posted on 02 March 2010

Dear Friends

One of my client has transferred the capital asset (agricultural land sit. in urban area) during 09-10 and the consideration (Rs.10 Lacs Capital Gain Rs.8 Lacs)

is partly (10%)received yet , and balance will be received up to sep.2010 how can he claim exemption u/s 54B or 54F bcoz of full consideration is still not received and also he will not able to deposits in Capital gain account scheme as per above section and plz tell me what is the taxability in A/Y 10-11.

Replies (3)

Amir

Learner

4898 Points Posted on 02 March 2010

Dear Vikas Sir,

Sec 54 B - requires assessee to deposit the amount of CAPITAL GAIN

Sec 54 F - requires assessee to deposit NET CONSIDERATION

Literal reading says that above amounts should be deposited before the due date of furnishing return u/s 139.

Since in this case the above condition is not fulfilled therefore exemption will not be allowed.

We have so many examples of similar hardships- eg - employee retired in March & his Gratuity becomes due in March itself However the same is received by him in April, now in this case employee is not entiteled to the exemption u/s 10