To avail exemption under the provisions of Income Tax Act, you have to invest in a house or land meant to construct a residential house within 3 years.
Proceeds from sale of converted land
Query 1: can proceeds from sale of converted land be re-invested in multiple lands (or does it have to re-invested in only 1 land or house)? Query 2: if the registration (sale) has happened in July 2015, till when do I have time to re-invest the proceeds from the sale....July 2016 OR March 31, 2016 OR March 31, 2017? Appreciate your response. Thanks.
Asked 8 years ago in Capital Gains Tax
No you can invest the sale proceed only in one residential House Property. It can be used for purchasing a Residential House Property or construction on existing land.
In response to your second query you can invest the same in the purchase of residential property with in two years from the date of sale i.e. before July 2017. You need to invest the sale consideration in capital gains accounts scheme before July 31 2016 i.e. the last date of file returns for FY 2015-2016
Ask a Chartered Accountant
Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
Ask a CA