SECTION 54

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 July 2011 a person have long term capital gain from sale of residential house property.....

he has investment in land purchase.
amount of land (new investment) is more than by long term capital gain..

whether he is required to deposit some amount in CGDS Account for construction on land in future.....bcz he is already in limit of exemption u/s 54, land (new investment) is more than long term capital gain

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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15 July 2011 The amount of capital gains is required to be utilised for the purpose of construction or purchase of a residential house and the "future" in which the construction is required to be completed is not indefinite.
Within 3 years from the sale of original asset, house must be constructed.

If amount of capital gains is already utilised for purchase of land then no need to deposit the amount in Capital Gains Deposit A/c.

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