|Question And Answer|
|Querist:||T R SHAH|
|Answered by:||Advocate Shashi Ashok Bekal|
|Tags:||Amount not invested, Capital Gains|
|Date:||April 8, 2022|
RESIDENTIAL FLAT WAS SOLD IN FY 2015-16 AND CAPITAL GAIN AMOUNT WAS INVESTED IN CAPITAL GAIN ACCOUNT SCHEME WITH NATIONALISED BANK HOWEVER THE AMOUNT COULD NOT BE UTILISED FOR PURCHASE OF NEW HOUSE AND BY OVERSIGHT AMOUNT REMAINED IN BANKUNDERCAPITAL GAIN ACCOUNT SCHEME TILL FY 2022-23 WHAT COULD BE TAX IMPACT IF CAPITAL GAIN ACCOUNT IS CLOSED WITH BANK IN FY 2022-23
As per proviso to section 54(2) of the Income-tax Act, 1961, that if the amount deposited under the scheme is not utilised wholly or partly for the purchase or construction of the new asset within the period the stipulated period, the amount not so utilised shall be charged under section 45 of the Act 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.
In above case the amount of deposit unutilised and shown as income u/s 45 will give distorted results.Rather the capital gain deferred due to deposit of amount be taxed after three years.
Seen a case wherein the assessee to save 50000 capital gains deposited 5000000 in CG deposit scheme apprehending 50C.Now the same is unutilised.
If 5000000 is shown as income and taxes at 20 pc it comes TEN LAKHS plue cess etc.
However the same should be 10000 20 pc of 50000.
The assessee calculations been seen.The section will give incorrect amount.
There must be one or two ITAT orders .