Capital gain tax scheme

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Premang Goradia (Querist)
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27 January 2019 1) I HAVE SOLD MY PROPERTY IN DEC 2018,2) I HAVE INVESTED MONEY IN CGS SCHEME OF BANK
QUESTIONS IS a) in how many(maximum) yrs do I have to reinvest ( as I intend to buy underconstruction property).
2) after 3 yrs if not utilized amount, along with Tax do I have to penalty ,interest etc.

Mayur

Mayur (Expert)
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28 January 2019 1. Within a period of one year before or two years after the date of transfer of old house, the taxpayer should acquire another residential house or should construct a residential house within a period of three years from the date of transfer of the old house.
I think the two years clause is applicable to you since you are buying a property and not constructing one.
2. As per Section 54 if amount is not invested within 2 years/3years as the case may be, the unutilized amount shall be taxable in the year in which the 2/3 years expires. So there will not be any penalty or interest if tax is paid on the unutilized amount in the year in which 2/3 years expires.

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