Long term capital asset sale exemption

I sold a capital asset (website) as per the following details: 

- Sale Agreement executed and registered on 28th October, 2014.
- First payment received on 2nd November, 2014 and final payment received on 7th January 2016.
- Funds were deposited in Capital Gain Account on 28th August, 2015 and rest on 12th July, 2016
- Funds are still in the CG account as I haven't found the right property. 

MY QUESTION: Is there  a time line to buy a residential property even after the funds are deposited in the CG account? 

P.S: As per my understanding, a capital gain account  is only a temporary arrangement to park your funds for 2-3 years and you have one of the following options to save taxes. 

1. Investment in residential property within a specific time frame (Section 54/54F)
or
2. Deposit funds under the Capital Gains Account Scheme (CGAS)
or
3. Investment in bonds (Section 54EC)
Asked 2 months ago in Capital Gains Tax from Canada
Dear Sir,

At the outset, I want to clarify that exemption of 54F is available only in the case of sale of long term capital asset. 

Further, you need to deposit money in the cgds account before the due date of filing of ITR. Due date of filing of ITR for nom-audit Assessee is 31 July of the next year. Since, you have deposited money in the month of August, you are not eligible for the exemption.

Also, this money needs to be utlisi within 2 years from the date of sale of capital asset for the purpose of buying a residential house properly or within 3 years if you are constructing the property.

Investment in bonds needs to be made within 6 months from the date of sale.

Feel free to give me a call via call an expert option If you need more clarification

Thanks and Regards
Abhishek Dugar
CA CS B.Com
Caabhishekdugar@gmail.com
Abhishek Dugar
CA, Mumbai
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Yes you need to purchase a residential property within 2 years from date of sale or before one year from date of sale. The amount in CG is being kept to temporary postpone the payment of tax for purchase of property.

If the CG amount is not invested within a specific time in purchase or construction then the whole amount is taxable.
Shyam Sunder Modani
CA, Hyderabad
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Sir in my last answer i mentioned the same thing that property can be purchased within 2 years from the date of transfer. The transfer in your case will be considered when the last payment was received i.e. 18-02-2016 and transfer took place.
Shyam Sunder Modani
CA, Hyderabad
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Dear Sir,

If the website was held by you for almost 9 years, then its a long term capital asset. However, the date of sale will be date of execution of sale agreement. 

Receipt of consideration is just a follow-up action.

Feel free to give me a call via call an expert option If you need more clarification

Thanks and Regards
Abhishek Dugar
CA CS B.Com
Caabhishekdugar@gmail.com
Abhishek Dugar
CA, Mumbai
766 Answers
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