I had sold my house property in sept. 2010. While filing the IT return in July 2011(Asst year 2011-12), I had shown an investment of PART of the capital gains in another property within one year PRIOR to the sale of this property under Section 54. The stipulation as I understand is this that this property should finally be acquired within 2 years of the sale of property aginst which capital gains have arisen.
Now the Builder in whose society the money was invested has absconded/is not likely to complete the building by september 2012. Could this money NOW (Before September 2012) be invested in staraight purchase of a flat in order to avoid any penal tax imposition by Tax Authorities as the property COULD NOT be acquired within 2 years for No fault of mine.
OR is there any other method avoiding invite of any penal tax liabilities?
CAclubindia
