Capital gain - where to deposit till new investment

You can't get the benefit of exemption under section 54EC(as far as i remember the section no.) which is also not applicable in your case. But you can get the benefit of exemption under Sec 54. For getting the exemption you need to purchase a residential house for the amt. you want to take exemption.You can also buy a house of greater value.Accoring to the provision either you will have to buy a new house within 2yrs or construct within 3yrs. Till the time you use the money for purchase or construction you have to keep it Capital Gain Deposit Scheme(CGDS).So you can't keep it as FD or in your Savings Account.

I guess I am not eligible for section 54 (investing in purchasing a house since I own 2 houses)

I am eligible for section 54EC (invest in bonds)

Someone could please confirm?

Thanks

Yes you can invest in NHAI or RECD bond before due date of filing ITR. You can invest upto 50Lac

Thanks Pankaj for quick reply.

I have one more query. Do I need to show all these transactions (sale of flat, the capital gain earned, CG invested in bonds etc) in the ITR?

Thanks

Yes you have to show this in ITR-2...

I mistakely said Sec 54EC. I wanted to mean Sec 54F. The condition that if you own more than one House then you are disqualified is for Sec 54F and not Sec 54. So you can avail the benefit of Sec 54 and yes you can also avail Sec54EC.

Thanks Avijit, but could you please explain how come I am eligible for sec54? basically I am trying to get the concept sec 54.

thanks

Any person who has LTCG for selling a house can get the exemption u/s 54 for the amt he purchases a residential house before 1yr or within 2yrs from the date of such LTCG. You will also get the benefit if you construct a residential house within 3yrs from LTCG. If you do not use the entire amt of LTCG before return filing date then you have to deposit the unused amount to Capital Gains Deposit Scheme.