A residential flat was sold in July 2015, the flat was purchased 20 years ago. At the time of sale, 50% of the amount was deposited in Capital Gain Account Scheme and other 50% was kept for purchase of under construction flat from a builder. Now after 2 years the builder is not able to proceed with construction and is returning the advance amount collected 2 years back for purchase of flat.
Tax scenario arrived here is the amount deposited in Capital gain account scheme will be taxable at the end of 3 years from the daye of sale of original flat. (please correct me if I am wrong)
Please explain what will be the tax implication for the amount kept aside for purchase of under construction flat. Builder will return the advance amount next month (2 years from date of original sale). Will capital gain be taxable this year or next year on expiry of 3 years from the date of original sale. For indexation purpose date of sale will be July 2015 (original sale date) or 2017/2018 (date when capital gain tax becomes applicable again due to amount not utilised).
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