Ltcg deduction u/s 54

This query is : Open

CA Mehta Ankur N. (Querist)
Follow

27 March 2014 Dear Sir,

One of our client have sold home in AY 2012-13 and invested money in another flat, he has given money for bookings. Now today his deal got cancelled.

SO what would be impact ???

If he purchases another home then deduction under section 54 is available or not ??

This is genuine case but as i interpreted the law , as per my view no deduction will be allowed and he have to pay tax on capital gain on which earlier deduction has been taken.

Please guide me.

Thanking you in advance.

If query is not understandable manner, then i will re write it. But please give reply experts.

Best Regards,
CA Ankur Mehta
+91 94283 19758.

Rupesh Jain

Rupesh Jain (Expert)
Follow

28 March 2014 after selling of house, all selling proceeds not invest as booking amount your client.

where is the money.

if it is deposit in capital gain a/c then client use for construction for 3 years.

if give all amount as booking amount then he have to pay tax.

Message likes : 1 times

Rupesh Jain

Rupesh Jain (Expert)
Follow

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!

CA Mehta Ankur N.

CA Mehta Ankur N. (Querist)
Follow

04 April 2014 Thanks for your reply.

But isn't it injustice ? Just because of deal could not complete, asses-see have to bear this much tax liability ?

In my client case, he is most genuine person but he have bear this then it is ellogical on my view. What say sir.