Capital Gain Tax investments

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vsraj (administration) 16 April 2021

House Property sold on 29.03.2021 (Sale Deed Registration) for Rs. 1 crore. Value of the property after indexation is Rs. 60 lakhs. Hence Capital Gain is Rs.40 lakhs.

Questions:

When should Capital Gain account is to be opened in a Bank? Immediately?

How much amount should be in Capital Gain Account ?

Whether the Balance Amount (other than Capital Gain) can be invested in Shares, Mutual Fund etc?

For purchasing the New Propertywhether the amount from Capital Gain account can be used?

Whether Resale - House Property can be purchased to avoid capital Gain ?

In which instruments investment is possible to avoid capital Gain Tax ?

Susmita Dutta, CA , CPA (CA ) 16 April 2021

Required to deposit the un-utilised capital gain in the capital gains account scheme before furnishing return of income but not beyond the due date for furnishing return of income.

Yes, For purchasing the New Property the amount from Capital Gain account can be used.

CMA Poornima Madhava (ACMA) 16 April 2021

1) Due date to open CG deposit account is before filing of ITR for FY20-21 2) CG deposit can be up to the amount of capital gain (₹40 lacs) 3) Yes, balance can be invested in other available options 4) Yes, CG deposit can be utilized for purchase of new house 5) Yes, even used house can be purchased to avail exemption 6) 54EC can be the other investment option