Long Term Capital Gain-Sales proceeds partially utilised before March 31 to purchase a new property

Tax queries 216 views 1 replies

Dear All,

My client Long Term Capital Gain is Rs 80Lakhs.

He sold a house property in July,2024.

He is purchasing a house property for which he has paid an advance Rs 30 Lakhs in Feb,2025.

He is planning to register the property in April,2025 and pay balance Rs 50Lakhs before Registration.

(a)What is the tax implication of Rs 50Lakhs which he is holding in Bank Deposit as on Mar31,2025?

(b) What will happen if he pays Rs50Lakhs before March 31 for House purchase?

Thank you in Advance.

Replies (1)

if you utilize the funds before the filing of the tax return for FY 2024-25, then its okay. Else, you need to deposit the money in Capital gains accounts scheme account.

The utilization can happen through home loan too.


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