Capital Tax on Sale of Home

You have to invest this LTCG before completion of 3 years in purchasing new house to get benefit of tax.

Dear

  You have to purchase house within 2 years or construct within 3 years from the date of transfer. Untill u purchase or start construction you have to deposit the Gain in specified Bank account

Sir You can wait for a period of 3 years.......................

Either you can Purchase the house till 31st July, 2011 or you have to invest the same till 31st july in a seperate Account In Any repudioated Bank Under Capital Gain Scheme But You have to Invest that money with in the slot of 3 yrs otherwise after 3 yrs vthe same shallbecome taxable Again as LTCG.............

Dear Anita

You have to purchase  the house property within 2 years  or construct a residential house within 3-years from the date of transfer/sale of the bunglow.

Till then the amount is required to be deposited in Capital Gains Acct at a nationalized bank. It has to be deposited before the due date of furnishing the return of income.

Please tell me what is the procudere to open the account.

abhay.

Hi Anitha

As per S.54, You have to deposit the amount in the Capital Gains Deposit Account in any branch of the nationalised bank if you could not utilise it for the purpose of purchase of new home before the due date of filing of Return. This amount should be utilised within 2 years in case of purchase and 3 years in case of construction of new home.

Originally posted by : Abhay Sethia
	Please tell me what is the procudere to open the account.   abhay.

Abhay,

You require to visit the desired nationalised bank & fill in the relevant forms required for opening a  Capital Gains Account (These forms would be provided to you by the bank itself.)