Sale of Ancestral property - Capital Gains

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MONIKA SALHOTRA (Querist)
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20 February 2025 Ancestral property will be sold in March 2025 / April 2025. What is the time limit to deposit the sale proceeds in Capital Gain accounts scheme and the time limit to purchase the specified bonds?
Please also inform incase it will make any difference if the land to construct the new property has been purchased in January 2025

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 February 2025 1. Capital gains bonds should be purchased within six months.
2. The amount that needs to be utilized for construction of residential house for claiming the exemption of LTCG, should be deposited before filing the relevant ITR u/s. 139(1) IT act.
3. No difference, it can be claimed as exemption, provided HP is constructed over it within specified time period.

MONIKA SALHOTRA

MONIKA SALHOTRA (Querist)
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25 February 2025 Please confirm
In case the land to construct the new residential property was purchased in FY 2024-25, whereas the sale of ancestral property will take place in FY 2025-26. In such case will the cost of land be included in the cost of new property to be constructed?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 February 2025 As per Sec. 54 interpretation it doesn't allow when the HP is constructed over it.

MONIKA SALHOTRA

MONIKA SALHOTRA (Querist)
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25 February 2025 Will it make any difference in case the sale takes place in FY 2024-25 itself?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 February 2025 Only if sell of HP is before the purchase/possession of plot.

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