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Capital Gain Account Scheme Deposit

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Jaiminder Singh Dhillon

78 Points Posted on 14 October 2021

Is it necessary to deposit capital gain amount in capital gain account scheme before purchasing new asset? I mean if the new asset is purchased before the due date, do we still have to deposit amount in the capital gain account scheme immediately after the sale of old asset and before the purchase of new asset?

Replies (2)

Quick Summary

This discussion clarifies the rules for depositing funds into the Capital Gains Account Scheme. It explains that if you purchase a new asset before the tax return due date, you don't necessarily need to immediately deposit the sale proceeds into the Capital Gains Account Scheme. The funds can be held in a regular savings account and used for the new asset purchase, provided it's done within the stipulated timeframe to avail exemptions under Section 54.

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 14 October 2021

If new asset is purchased within due date then there is no need to deposit the amount in capital gains deposit account

Jaiminder Singh Dhillon

78 Points Posted on 14 October 2021

So after sale of old asset, the consideration can be deposited in a normal savings account and then can be used for purchasing the new asset before the due date and the exemptions under section 54(and the other respective exemptions in respect of capital gains) be still available. Right?