Capital gain a/c scheme

i think remaining 25 Lac wud be taken as Capital Gain...

But wait for expert comments..

Assessee instead should have used the CGAS money for purchasing the property and taken the personal loan from Bank by giving security of the new asset.

Anyways in my view the balance25lacs was withdrew from CGAS for personal use, hence not eligible and the same shall be taxable as CG.

Arihanth is correct.This will be taxable as it has been used for personal purpose.

in this case RS.25 lac taxable in the hand of assessee as capital gain after the expiry of stipulated perid .

The fact that the statute provides for deduction in respect of new residential house acquired within one year before the transfer of a residential house (being the subject matter) as also eligible for deduction, the purposive interpretation of S. 54 would lead to the inference that the direct nexus need not be established between sale consideration and investment in new residential house.

Hence, balance Rs. 25 Lacs will not be taxable as capital gain.

Dear Anubhav Sir,

I request you to put more light on the clarification you made above. In my view the CG shall be taxable under Sec 54 as the section quotes as follows:

'Provided that if the amount deposited under this sub-section is not utilised wholly or partly for the purchase or construction 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 three 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.'

Further if the same is allowed (i.e. CG being not taxable), as an Assessee I would choose to use the CGAS money for my personal use for a period of 2 years or whatsoever period eligble; and later would buy the asset at the end of the period by a taking a bank loan against asset and also take the benefit of CG exemption.

Please pardon me if my understandings are incorrect.

With in the specified period he invested in Res Property, so,,

consideration                   75L

Exemption  u/section 54 75L

Capital Gain  will be         Nil

remaining 25 lacs taxable if such amount amounts withdrawn for persounal use then it will be taxable as CG

but if stipulated time period not over and u use such personal loan for puchasing residencial house then it will not attract CG.

Dear Cci Members,

Please also consider how the investment was made (i.e. CGAS utilization) and not just the whether the CG was invested or not.

in this case capital gain is exempted upto rs. 75 lac in the year of sale  & rs .25 lac is taxable after the expiry of stipulated period. and i think assessee can claim of interest on borrowed loan under sec24(b) .

as per sec54 only  capital gain amount deposited in c.g.a/c scheme not the sale amount.if capital gain amount is 75lacks then whole amount deposited in c.g.a/c & whole amount utilise in new house.in this mettar 25lack will be taxble