Capital gains

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 April 2012 An individual has sold a property in january 2012, which was acquired in June 1996 for Rs. 174500. The sale consideration is Rs. 1100000 as is considered for s. 50C. the assessee has deposited the money in Bank of maharashtra an amount of Rs. 11 lakhs @ 10.1% interest rate. deposit is from 30.03.12 to 30.03.15. the receipt clearly indicating that this for capital gains purposes. Is it sufficient compliance by the assessee of the capital gains tax provisions. After a period of 3 years, would the withdrawal be taxable in the hands of the assessee. Please clarify.

CA Kishore Tallam

CA Kishore Tallam (Expert)
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14 April 2012 U have to utilise the amount either for purchase or construction of property else it would be treated as income in the previous year the period specified for utilisation of money expires.