Capital gain exemption for reconstruction of house

Hi

You can claim the exemption on total consideration of Rs.35,00,000/- once if you planned to utilize all the consideration for the reconstruction of another property. You can claim the exemption now if the proceeds have been deposited in Capital gain account scheme by informing the same to Income tax  Dept.

Yes.

Exemption can be claimed. You can use the proceeds of the sale of the old house to re-construct the new house.

The requirement is that the construction should get completed within three years from the date of sale of the old house. But, just to confirm the final direction of funds to be only towards this purpose, income tax says that before the date of filing return for that year in which sale happens, the amount should be deposited in the Capital gain deposit account. Thereafter, money can be utilised from this account for the purpose of payment for construction of the new house.

-Ashish

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