Capital gain. fd

Respected sir. one of client sold his residential property cost 37.00 lakhs, and same amount deposited as FD for 45 days and earned interest on that,it happened two times ie..each 45 days.. after that he has purchased a residential house for 40.00 laks with the amount....total period of above transaction with in 12 months....my question is he is eligible to claim capital exemption u s 54...please
Replies (9)
Quick Summary
A client sold a residential property for £37 lakhs and deposited the funds into a Fixed Deposit (FD) for 45 days, repeating this twice. The total transaction period was within 12 months before purchasing a new house for £40 lakhs. The query is whether this qualifies for capital gains exemption under Section 54. The advice suggests it might be allowed if the sale and purchase occurred within the same financial year or before the tax return filing deadline, provided the capital gain was declared and the exemption was claimed appropriately.

If the sale purchase transaction took place in same FY or before filing corresponding return, then its allowed.

I think it will be allowed
Thankyou very much for your kind reply...the property sold in Feb.2020 and convert as FD as in June month 2020, till that amount is in his SB account...and again re deposit in August month. and in Feb.2021 he has purchased a house cost of rs 40.00 l
lakhs sir....please...

What was the treatment for capital gain in AY 2020-21?

How the return filed?

Sir...total amount received from sale of property is in his sb .ac so bank balance as on 31.03.2020 is above amount... so same was mentioned in return for the a y year 2020.21

Whether the capital gain from the sale of house property declared in the return?

No sir

Then where is question of its deduction? Wait for departmental notice for such  claim....

Thank you sir for your valuable reply spent time for me.....

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