Capital gain exemption

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Mayank Taparia

Ca final student

108 Points Joined November 2013

If an assessee sold a "land" on 24 march 2014 for 21lacs and the same was purchased in 1908 n F.v as on 1981 is ₹100 .. The assessee had deposited the sale proceeds in FIXED DEPOSIT on 2 april 2014..Can assessee claim exemption if assessee wants to use this sale proceeds in buying a residential house property or weather he can claim exemption in sec 54EC..Pls provide with detail explaination..as assessee haven't deposited the same in any CGDS ACCOUNT..

Replies (3)

Anantha Subramanian

Student CA IPC / IPCC

131 Points Joined July 2014

according to what i have inferrred from provision is, either u need to claim exemption under 54F or 54EC u need to either invest your capital gain amount immediately in residential house or specified bonds respectively fullfilling all the conditions of the respective sections.. but if u cant invest them immediately then u have to deposit them in Capital Gain Deposit a/c and not in other account.. since in this case amt is not deposited in Cap Gain Depo a/c i think exemption under the respective sections cannot be claimed ...