In a Better way, You claim exemption u/s 54
PROVISION
1.Sold Asets is Residential House
2.Gain from sale of House is "Long Term Capital Gain"
3.Gain Amount Invested in Residential House
4.Time Limit for New Investment = Purchase within (-)1 Year & 2 Years or Construct within 3 Year
Note 1 :- Provision Required that Minimum Holding period of New Assets is 3 Years from Date of Purchase of New Assets, So firstly you confirm that you Hold New Assets for 3 Years or not....??. If Once you claim exemption U/s 54 on New assets than you not able to sale this New assets before 3 Year from Date of Purchase and If New Assets Sold Before 3 Year than Gain Is Taxable in which year when you sold the Assets.)
Note 2 :- If Amount of Capital Gain not Invest in New Assets up to Due date of Return than up to due date of Return assessee required to deposit in CGDS A/c(Capital Gain Deposit Scheme) and withraw any time only for Purchase or Construct of Residential House. If Amount withdraw and not utilised for above mentioned purpose than Gain Taxable in which year when amount withdraw.
ANSWER
Dear Mr. Sanjay,
Situation 1 :- If New Assets Not Sold Before 3 Year.
Beacause you satisfy all conditions and also before Due date of Return amount invested in New assets So you claim exemption u/s 54 i.e. you claim exemption on New Residential House Purchase on May 2011.
Situation 2 :- But if You Planned New Assets sold before 3 Year
You Deposite all Gain Amount in CGDS A/c before due date of Return and Exemption Claimed and As you say, you construct new house than amount withdraw from CGDS A/c & use for that purpose(i.e. construction of New Residential House)
CAclubindia
