Failure to purchase asset (sec 54f)

The capital gains on the transfer of the original property is taxable in the year in which it is sold. The capital gain would be taxable; unless the unutilized amount of sale proceeds are deposited under the Capital Gains Account Scheme, before filing ITR of PY.

In case the assessee deposits the amount in the Capital Gains Account Scheme but does not utilise the amount deposited for the purchase or construction of a residential house within the specified period, the amount not so utilised shall be charged as capital gains of the year in which the period of 3 years from the date of sale of the original asset expires and it will be long-term capital gain of that previous year.

Originally posted by : Dhirajlal Rambhia
	The capital gains on the transfer of the original property is taxable in the year in which it is sold. The capital gain would be taxable; unless the unutilized amount of sale proceeds are deposited under the Capital Gains Account Scheme, before filing ITR of PY. In case the assessee deposits the amount in the Capital Gains Account Scheme but does not utilise the amount deposited for the purchase or construction of a residential house within the specified period, the amount not so utilised shall be charged as capital gains of the year in which the period of 3 years from the date of sale of the original asset expires and it will be long-term capital gain of that previous year.

Thank You so much for the reply sir.

Sir, If the amount is utilised in case of a bungalow, which is being constructed by a contractor then what shall be the implications? 

Bunglow is a type of residential property...... eligible for exemption u/s. 54/54F........

Only thing is other conditions of the section should be satisfied. (specifically time limit, as per query)