Capital Gains Reinvestment

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Dear Forum Members

I need advice on a Capital Gains reinvestment.

I sold a Plot in Feb 2014, the capital gains of ₹ 45 Lakhs is parked in a Capital Gains account Scheme in an authorized bank. I need to reinvest by Feb 8, 2017 in an residential house (not an apartment as the 2 year time period has expired for buying an apartment)

It is now almost 2 years 10 months since I sold my plot. The query I have is

Can I buy a built old residential house within the next 2 months to claim the capital gains benefits or should I buy a Plot and construct a house within the next 2 months to claim the capital gains benefits

Advice from experts on this forum will be greatly appreciated

regards

P S Krishnan

AI Summary

Forum Member Queries Capital Gains Reinvestment Options: New Construction vs. Old House Purchase for Tax Benefits A forum member seeks advice on reinvesting capital gains from a property sale in February 2014. The capital gains of 45 lakhs are in a Capital Gains Account Scheme, with a deadline to reinvest by February 2017. The member inquires whether purchasing an old residential house or constructing a new one on a purchased plot would qualify for capital gains benefits. Responses suggest constructing a new house within three years to claim benefits, or alternatively, paying taxes on the gains. The member decides not to reinvest and queries about tax liabilities and declaration periods for the capital gains.