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Capital gain

Others 538 views 1 replies

Vikram Dhanani

Article

45 Points Joined January 2010

Dear All,

I am selling my residential house by March 2012 end. I want to know till how much time I can keep this money without paying any Capital Gain Tax on it. What is the time period before which I need to purchase new house to avoid paying Tax. Guide me with detail procedure and things to be done in this regard.

With best regards

Replies (1)

Sanat kumar

Chartered Accountant

265 Points Joined December 2009

Hi Vikram,

You have to deposit the amount equilent to Capital Gain into a Bank Account Capital Gain account scheme within 6 month of transfer or before filing of your return (whieh ever is earlier).

And you have to utilise the amount within 2 years (in case if you will purchase a residential house) or 3 years (in case if you will construct a residential house) from the date of transfer (sale ) of the residential house property.