What would be the consequences if an assessee does not utilised the amount deposite in CGAS u/s 54 within precribes period.The Act said that the amount deposited in the capital gain scheme would be treated as capital gain in the third year .
but i want to know that weather it would be trated as long term capital gain or short term capital gain.
Please give your answer with reference to any case law or any strong basis.
Sec 54 exemption only if the gain is LTCG....so here CGAS unutilised amt will be taxed as LTCG because if the amt would not have ben deposited in CGAS...then the gain which earlier exempt would have been taxed as LTCG.
But in case of 54B , the unutilised CGAS can be taxable as STCG or LTCG depending on capital gain against such exemp taken.
Please provide some relevant base for your answer such as any case law.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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