Resale of house built under sec 54 exemption

This query is : Resolved

Abhijit Kolte (Querist)
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18 December 2018 I have run into the following problem.

Oct 2014: Original house sold for long term capital gain of 19,00,000 and Amount put in a Capital Gain Account Scheme account.
Jul 2015: ITR2 filed claiming (or showing) exemption under sec 54
Mar 2017: bought land.
Sep 2017: Completed construction of house. Total cost, including land, : 29,00,000 (19,00,000 from CGAS account + 10,00,000 from other sources)
Jul 2018: ITR1 filed without any reference to the newly built house.
Aug 2018: ITR1 accepted and intimation under sec 143(1) issued.

CGAS account has still not been closed. (Closure requires permission from A.O. and I have not yet applied for that)
I want to sell the new house now for 45,00,000 (ie. within 3 years from date of construction)

What will be my tax liability?
What is the last date to close the CGAS account?

The ITRs were prepared and filed by a tax consultant since I really dont know much about tax filing.

Abhijit Kolte

Abhijit Kolte (Querist)
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19 December 2018 After reading various articles on CAclubindia I feel that my tax consultant has filed wrong ITR for F.Y.2017-18. He should have filed ITR2 instead of ITR1 and shown the capital gain utilisation in schedule CG of ITR2. And I am still confused about the last date for the closure of CGAS account.

Could an expert please go through my problem so that I can confront my tax consultant. He is confident that he is right. I think otherwise.

Also, what documents are required to be submitted along with application to close a Capital Gain Account Scheme account? and how long does it normally take the A.O. to verify?

Thanks.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 September 2021 The last date of closure is just after 3 years from the date of original property sale. The time delay due to obtaining permission from ITO is discounted.

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