I am planning to sell a house for 40 lakhs and instead of paying LTCG i am planning to invest in Capital Gains Accounts Scheme and after the expiry of said 3//2 years in CGAS(not yet purchased/construced a new house) instead of paying LTCG can i purchase 54ec bonds for next 3 years and can i withdraw the amount after the said period of bond without LTCG taxation.
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Capital gains accounts scheme
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No you can't do that. the CAGS scheme is N/a to 54EC bonds. As per the law the bonds are required to be purchased witihin 6months from the date of transfer of the asset. So either you can invest the LTCG in bonds withing 6m from the date of transfer, or you can invest the proceeds in an residential house & accordingly depoist the Cg in the CAGS scheme if the gains are unutilised on or before the date of filing your return of income.
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