Capital gain account scheme extension

Capital gain resulting due to sale of residential property has to be used for acquisition of new residential property one year before or two years after the date of transfer of old house to claim exemption under section 54. But if it's used for construction of a new residential house then the timeline is three years from the date of transfer. So you can continue the CGAS account and use the amount for construction. But ensure that construction gets completed within the prescribed time limit of 3 years. Else the balance lying in the account will attract tax in the relevant assessment year.