Act RulesIncome Tax
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Capital gains relief for reinvestment into residential property requires timely deposit and triggers recapture if proceeds remain unutilised.
Provision grants a proportionate exemption from long term capital gains where individuals/HUFs reinvest proceeds from sale of a non residential long term asset into one residential house in India, subject to purchase/construction time windows. Unutilised proceeds must be deposited under a notified scheme by the return filing due date with proof; recapture applies if deposits are not used within three years. The enacted text ties deposit triggers to net consideration, shortens the disqualification window for subsequent purchases, and imposes monetary caps and heightened compliance obligations.