Capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2015 AN ASSESSEE SELLS EQUITY SHARES OF PVT COMPANIES AND MAKES LONG TERM CAP. GAIN. IN THE FIN. YEAR 2013-14(SEPT 13). HE HAS INVESTED IN RES. FLAT IN JULY 13 AND GETS ALLOTMENT LETTER ON THE BASIS OF WHICH HE CLAIMS EXEMPTION U/S 54. NOW SINCE THE CONSTRUCTION ACTIVITY OF THE SAID FLAT HAS COME TO STAND STILL AND IS NOT EXPECTED TO GET IT HE WITHDRAWS( APRIL 2015) THE AMOUNT INVESTED WITHOUT ANY GAIN ON IT. THE EXEMPTION WHICH HE TOOK IN FIN YEAR 2013-14 GETS TAXABLE UNDER THE HEAD LONG TERM CAPITAL GAIN IN THE FIN. YEAR 2015-16 ( NOTE: THREE YEARS ARE NOT OVER). NOW CAN HE INVEST IN ANOTHER RESIDENTIAL FLAT NOW AND GET THE EXEMPTION U/S 54. PLEASE REPLY

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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18 May 2015 THE ASSESSEE NEED TO CONSTRUCT NEW HOUSE WITHIN THREE YRS FROM DATE OF TRANSFER. YES STILL HE CAN DO THE INVESTMENT PROVIDED HOUSE IS CONTRUCTED IN SPECIFIED PERIOD.
CA MANOJ GUPTA'
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