10-mark question · Part C · Law of Taxation

The assessee has purchased house property in the year 1989. Subsequently he invested a sufficient amount for extension and improvement in the year 1993. He sold the house for Rs. 85 lakhs in July, 2012. After calculating the index value of the cost price and improvement of the property as on 2012, the capital gain arose was Rs. 69,50,000. The assessee has deposited this capital gain in a capital gain account with SBI for a lock-in period of 3 years. The assessee did not invest the capital gain in purchase of a house nor in constructing a house. After maturity of the deposit, can the assessee withdraw the deposit? If so, what is the procedure? If he does not invest as required, is the assessee liable to pay the tax?

Appeared in

• Law of Taxation · August/September 2013 Mapped paper Download

Mapped topics

• Salary and income from house property — Unit II
• Profits of business, capital gains and other sources — Unit II

Mapped case laws