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exemption u/s 54

Tax planning 703 views 3 replies

Juhee

CA Final Student

40 Points Joined January 2009

If amount deposited u/s 54 of the income tax act, 1961 is withdrawn for purposes other than for investment in new redential house property before the completion of 3 years, then when should the amount of capital gains be taxed , in the year of withdrawal or after the completion of 3 years?

Replies (3)

CA Nishant Chakrawarti

Audit MAnager

77 Points Joined January 2008

The amount which is deposited for claining the deduction will be taxable in the year in which it is withdrawn.and wheter it is LTCG or STCG will depends over the exemtion u claimed if u claimed exemtion for LT then the taxable amt of withdrawl ll be lt or vice-versa.