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Capital gain

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Divya Choudhary

5 Points Posted on 04 March 2021

sold residential house property on 12/02/2018 and deposited the capital gain amt in capital gain account scheme and did not utilised the amount neither for purchase of property or construction of property .in whuch year the amt deposited in cgas will be taxable nd what is the expiry period 2 yrs or 3 yrs

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Quick Summary

If you've sold a residential property and deposited the capital gain into a Capital Gains Account Scheme (CGAS) but haven't used it, it will become taxable. The funds must be used for purchasing a new property within two years or for construction within three years from the sale date. If not utilised within these periods, the amount becomes taxable in the third year following the deposit.

Naveen

student

334 Points Posted on 04 March 2021

As per Sec 54, If amount is deposited in CG deposit scheme, it should be used for

1. PURCHASE of residential property within 2 yrs from the date of transfer i.e before 12.02.2020 or

2. CONSTRUCTION of residential property within 3 yrs from date of transfer i.e before 12.02.2021

In case if such amount is not used, maximum u can postpone or avoid tax for 3 years. It must be taxable in 3rd year. Here in ur case 3 years from 12.02.2018 will be completed on 12/02/2021. So it will be taxable in FY 2020-21 or AY 21-22