Account

Dear Sir,

Firstly, in order to save taxes, you have to reinvest in a residential house and not in a plot. Or you can reinvest in bonds notified by the govt.

Initially you can put money in any account and later on you can transfer as per the option you choose.

Please feel free to call/ revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com

Dear Sir,

Account will not make any difference in tax liability but it will only help you to use the fund further. If you want to reinvest the same further than invest the same in NRO Account only.

Capital Gain Account is just intermediary options till the time you further invest after the end of the financial year. So if you are selling house currently and further invest in new property by September,17 than meantime need to park the amount in capital gain account only

And if you are further investing in current year it self than you can keep it in NRO Account.

If you can save the tax on your long term capital gains by investing them in certain bonds. Bonds issued by the National Highway Authority of India (NHAI) or Rural Electrification Corporation (REC) have been specified for this purpose. These are redeemable after 3 years and must not be sold before the lapse of 3 years from the date of sale of the house property. Note that you cannot claim this investment under any other deduction. You are allowed a period of 6 months to invest in these bonds – though to be able to claim this exemption, you will have to invest before the return filing date. The Budget for 2014 has specified that you are allowed to invest a maximum of Rs 50lakhs in a financial year in these bonds.

Hi,

You can invest in plot and build a home on the land. You have 3 years time (From the date of sale) to complete the construction and obtain Possession Certificate. If the construction is not complete within 3 years, then you will have to pay Capital Gain Tax in the 4th year on the non-utilized Capital Gain portion.

You can keep the amount in NRO Account and make payments to buy the land and/or construction. Before the due date of filing returns (i.e 31-Jul-2017) you have to deposit the non-utilized Capital Gain Amount in Capital Gain Account Scheme and use the same to make any future payments towards the Construction.

Capital gain account is same as scheme. Yes you need to invest gain.

Yes. You have to open an Account under Capital Gain Account Scheme.

You said you have sold your Indian House. So, you will be covered by Section 54. You have to invest only the Capital Gain Amount in Capital Gain Account in order to save entire Capital Gain Tax.

Yes.

Only gain need to be reinvested.

1. Yeah you can do so.

2. Yeah both are same

3. You need to invest only capital gain amount.

Please feel free to call/ revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com

Hello Sir,

Yes the CGA is the account used in the CGAS.

Yes, only the capital gain is required to be invested in the scheme and make sure that the amount should be utilised to build a house property in a span of 3 years from the date of sale.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

Hi

You can deposit the cheque in your NRO account and then transfer it to your Capital Gain Account Scheme. You will have to invest only the amount of capital gain and NOT the entire sale consideration.

Trust this clarifies your query.

Regards

Keerthiga Padmanabhan

M.Com., CA, LLB