how to use proceeds of sale of property

Hai.,

You can hold the money in SB A/c for a period of 3 or 6 months or even more... but it depends on the period in which yu sell the property..

The law provides that if the sale proceeds are not utilised for within the due date u/s 139(1) ., it should be kept in a capital gain account scheme within the time limit u/s 139(1)...

In your case if yu have soldl the property on 30.09.2009, yu can even keep it for 10 months or 12 months i.e. upto the due date for filing your return...

In case yu sold it on march yu may have time only upto july or sep end...

However, if the amount kept in the scheme is not utilised  within the prescribed period  it will be treated as Long term capital gain in the year in which the prescribed period expires...

If one wants to pay tax, he is of liberty to use the balance moeny at his will...

however, if one wants to keep it in an SB account,, the above said provisions will apply..