tax planning - capital gain

HI DEAR,

FROM ALL OF THE ABOVE, IT SEEMS THAT U INVESTED SUM OF MONEY 35 LAKHS IN CAPITAL GAIN ACCOUNTS SCHEME. AS PER SECTION 54F, ASSESSEE DESIRES TO CLAIM EXEMPTION UNDER SECTION 54F CAN INVESTED SALE CONSIDERATION IN OTHER RESIDENTIAL PROPERTY BY PURCHASE WITHIN 1 YEAR BEFORE OR 2 YEARS AFTER THE DATE OF SALE OR CONSTRUCT WITHIN 3 YEARS FROM THE DATE OF SALE, ANY OTHER RESIDENTIAL HOUSE PROPERTY. IF THE AMOUNT REMAIN UNUTILISED ON THE DUE DATE OF FILING OF RETURN, HE MAY DEPOSIT THE SAME IN CAPITAL GAIN ACCOUNTS SCEME AND SAME SHALL BE USED FOR 54F WITHIN THE TIME SPECIFIED UNDER SECTION 54F.

IF THE AMOUNT STANDING TO THE CREDIT OF CAPITAL GAIN ACCOUNTS SCHEME REMAINS UNUTILISED AT THE END OF SPECIFIED PERIOD U/S 54F, SUCH AMOUNT SHALL BE DEEMED TO BE LONG TERM CAPITAL GAIN AND SHALL BE CHARGEABLE TO LTCG TAX IRRESPECTIVE OF IF U REINVETSED THE AMOUNT STANDING TO THE CREDIT OF CAPITAL GAIN ACCOUNTS SCHEME AT THE END OF 3 YEARS AGAIN IN SUCH SCHEME. THE PERIOD FOR INVESTMENT IS FULL FLEDGED AND CONCLUSIVE AND SHOULD NEVER BE EXTEND BY THE REINVESTMENT OF SUCH SUM.

REGARDS,

MANOJ

that was a nice try...........manish shah

my real query is can assesee avial exmption benefits of sec. 54 f agsinst deemded long term cap gain ( occured on account of non utilisatino of amount kept in cap gain scheme ) . if yes ,

 - is it enough that after 3 yrs i.e. on maturity he renew the same deposits under cap. gain scheme so that being untilise it will taxed as deemded cap gain and on account of reivestment he will calim expmt 54 f

dear manish........as per sec 54F exemtion can be claimed  only on transfer of  long term capital asset other than house property.......in ur case what has happened is unutilised amt has become taxable due to its non-utilisation as deemed capital gains..(THEREFORE,DEEMED CAPITAL GAINS IN UR CASE DOESNT ARISE FROM TRANSFER OF LONG TERM CAPITAL ASSET OTHER THAN HOUSE PROPERTY.INFACT IT ARISES AS THE SAME IS UNUTILISED FOR THE PRESCRIBED PERIOD)..........accordingly,ur tax planning wont work in this case.......

Agree with Mr. Manoj

It will be deemed capital gain and tax will be levied on it accordingly.

yeah...it will be taxed as long term CG if the amount in the scheme is unutilised after 3 years....

thanks for replying on capital gain tax planning issue ( 54 f ) manish shah .

have nice day .

In above case not avialabel  as per section 54F only upto 3 years we are deposited amount  is elgible  during this  we can  purchase residential house /constructed house (  purchase house eligible before 1 year  or after 2 years ) but construction elgible 3 years after transfer   we are not elgible after 3 years time  expire of this time we are taxable under capital gain