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Interest u/s 234b and 234c on unutilised amount of cga account.

Astha (Assisstant) (28 Points)

23 January 2016

Hi! Amount deposited under CGA account on 31-3-2012.Amount remains unutilised till 31-3-2015,so CG amount becomes taxable on 31-3-2015.Is interest u/s 234B is applicable from April 2012 to Jan 2016? And what about interest u/s 234C?

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CMA Poornima Madhava (CMA) (13097 Points)
Replied 23 January 2016

As I understand, the time limit (for construction of house property) is 3 years from the date of TRANSFER OF ORIGINAL ASSET (not from the date when the amount is transferred to CGDA).
If the amount from CG deposit a/c is not utilized within the time limit, then such amount shall be taxable in the PY in which the time limit expires (in this case FY 14-15 assuming the date of original transfer as 31/3/12)
Interest u/s 234B and 234C will be applicable from 30/3/15 (not from 31/3/12)