Others
1212 Points
Posted on 22 August 2015
I suggest you open a saving account with any bank called "capital gain Accounts scheme [CGAS]". Make an FD for that capital gain savings acc. You can purchase a new House within two years from the date of selling the old property. For funding this new house you can slowly withdraw from "capital gains saving account" .
Capital Gains Account Scheme: If you want to bide your time and do not want to hasten into an investment, you can invest the capital gains in a special Capital Gains Account Scheme (CGAS), with your bank, which serves to inform the taxman that you do plan to invest in a property, but at a later date. Deposits under CGAS are eligible to exemption from capital gains tax, but there are some conditions:
• Such a deposit must be done before you file your income tax returns for the fiscal in which the sale has been completed IN UR CASE ay 2016-2017.
• This is only a stop-gap arrangement, as the funds have to be used to buy or build a house within the period specified.
• Funds withdrawn have to be used within 60 days.
• You will have to pay tax arising on the interest paid.
I HOPE THIS HELPS