TaxTMI 
TaxTMI 
Exemption for capital gains on residential property reinvestment requires timely acquisition or construction and designated deposit use.
Exemption under Section 54 requires that long-term capital gain from sale of a residential house be reinvested in another residential house in India-acquired within one year before or two years after transfer or constructed within three years-to claim relief. Only individuals and HUFs qualify; the new house must be retained for three years or the exemption is withdrawn. Unutilised sale proceeds at filing may be placed in a Capital Gains Deposit Account Scheme to preserve the exemption, but unused deposits become taxable if not applied within statutory timeframes. (AI Summary)
Exemption under Section 54 requires that long-term capital gain from sale of a residential house be reinvested in another residential house in India-acquired within one year before or two years after transfer or constructed within three years-to claim relief. Only individuals and HUFs qualify; the new house must be retained for three years or the exemption is withdrawn. Unutilised sale proceeds at filing may be placed in a Capital Gains Deposit Account Scheme to preserve the exemption, but unused deposits become taxable if not applied within statutory timeframes. (AI Summary)
01 Oct 2019 
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