Assuming that the capital gain from the sale of a residential property is Rs.10 lakhs. Total sale proceeds of the residential property is Rs. 15 lakhs.
Whether it is sufficient if one deposits a sum of Rs. 10 lakhs in the CGAS with a nationalised bank or he has to deposit the entire sale proceeds of Rs. 15 lakhs.
Also assuming that the investor has used a sum of Rs. 5 lakhs out of the capital gain of Rs 10 lakhs as part payment of purchasing a new residential property and deposits the remaining capital gain amount of Rs 5 lakhs in the CGAS account. ( this is based on the assumption that it is sufficient if he deposits the capital gains sum in the CGAS). The total purchase price of the new residential property is Rs. 10 lakhs. Will he get exemption under the above scenario?
Please clarify. Thank you.
Sivaraja
CAclubindia
