QUERY RELATED TO U/S 54F CAPITAL GAIN

I have sold a property on 11th Feb. 2020 and deposited the amount of capital gain arising from the sale of property in Capital gain account scheme (CGAS) on 14th Sep. 2020 which was before filing of the income tax return. Now 2 years have passed from the date of sale but still I have not purchased the new property. Please advise whether now I can claim the exemption u/s 54 F by purchasing a new property and construct the same before the end of 3rd year from the initial sale of property?

Replies (3)
Quick Summary
This discussion addresses claiming exemption under Section 54F of the Income Tax Act after selling a property and depositing the capital gain into the Capital Gains Account Scheme. The user sold a property in February 2020, deposited the capital gain in September 2020 (before filing their return), but hasn't purchased a new property after two years. The advice confirms that it's still possible to claim the exemption by purchasing and constructing a new residential property within three years from the original sale date, provided all other conditions of Section 54F are met. Failure to do so will result in capital gains tax being payable on the unutilised amount.

Yes....
You can construct a Residential House (that includes cost of land, material and other things) within 3 years from the date of Sale and Exemption will hold good (Try to invest the whole Net Consideration otherwise you will get Proportional Exemption) Provided all other conditions for sec 54f is satisfied.
You would have claimed 54F deduction in A Y 2020-21 itself. now in order to avoid capital gains tax on unutilised amount in CGAS, you have to construct a residential property (includes land value) within end of 3 years from the date of sale of original asset
If you do not construct a residential house within a period of 3 years you have to pay capital gains tax. Invest in infrastructure bonds which have a high nav value.

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