regarding capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 December 2010 AN ASSESSEE HAS INVESTED CAPITAL GAIN IN PURCHASE OF PLOT WITH IN TIME AS PRESCRIBED UNDER ACT BUT HE WAS NOT ABLE TO CONSTRUCT WITH IN THE TIME LIMIT.

WHEN THIS CAPITAL GAIN IS TAXABLE after time limit or capital gain arising f. year

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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04 December 2010 yes, purchase/construction of house within prescribe time is the the basic condition for exemption.

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Querist : Anonymous

Querist : Anonymous (Querist)

04 December 2010 sir if assessee invest capital gain in purchase of vacant plot and he is not able to construct the house within time limit. then in which year capital gain is taxable (i.e after the expiry of time limit or in the year in which the capital gain arises)

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Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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04 December 2010 it shall be taxable on Expiry of time limit, the capital gain earlier exempted shall be taxable @ tax rate prevailing in the year when time limit gets over