19 July 2013
sir last yr i sold a agriculture land and capital gain deposited in capital gain scheme and in this year i withdraw the amount and uitilised this amount in construction of residential house what this amount will be tax or can i claim deduction u/s 54f by uitilising this amount
19 July 2013
The Amount withdrawal should be utilized only for the purpose mentioned under section 54B only i.e. purchase of Agricultural Land, otherwise it should be treated as Income as per section 54B which reads as under
if the amount deposited is not utilised wholly or partly for the purchase of the new asset within the period specified in sub-section (1), then,— i)the amount not so utilised shall be charged under section 45 as the income of the previous year in which the period of two years from the date of the transfer of the original asset expires; and ii)the assessee shall be entitled to withdraw such amount in accordance with the scheme aforesaid.
CAclubindia
