Personal Finance
If the said capital gains are not utilised to purchase another property by the end of qualifying period, the assessee shall be required to pay tax on the amount of capital gains so deposited by him
Updated : Mar 26, 2019, 06:35 AM IST
The amount of the capital gain which is not appropriated by the assessee towards the purchase/ construction of the new residential house before the date of furnishing the return of income, shall be deposited by him in Capital gains bank account and the last date of such deposit shall not be later than the due date for furnishing the return of income. If the said capital gains are not utilised to purchase another property by the end of qualifying period (that is, three years from the date of sale of the capital asset on which capital gain was earned), the assessee shall be required to pay tax on the amount of capital gains so deposited by him. However, you shall not be required to pay any penalty on such capital gains tax payable in Financial Year 2020-21.
The expert is director, Nangia Advisors (Andersen Global)
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