Minimum time period to invest in Capital Gain Account Scheme - Section - 54

When the capital gain arising on transfer of the residential house is not utilized for purchase / construction of a new house till the date of return filing, then, in order to claim the exemption, the unutilized amount is required to be transferred to ‘Capital Gains Deposit Account Scheme’.

The new residential house can be purchased / constructed by utilizing the amount deposited in the ‘Capital Gain Deposit Account Scheme’ within the prescribed time. However, in case the amount deposited is not utilized within the prescribed time, then, the unutilized amount will be treated as income of the previous year in which the period of 2 year / 3 years expires.