I sold a property on 15th of January,2011 with a long term capital gain. I am unable to find a right house now. I have my money deposited in FD. Can I keep the whole money in FD for few more months to look for the right house? I am using the interest received on FD for paying the rent for the house I am stayin now(& I really need that interest money to run the house). Please guide me as in how to keep my money in my account for 6 more months and look for the right affordable house. I was told by my CA that within 6 months I need to put my money in the Bond or tranfer it to Long Term Capital Gain Account in some bank where they pay less interest and also the money is not accessible by me.
1 Answers
If new house in not bought before income tax return filing date (31st July), then whole amount has to be put into capital gains account scheme with nationalized bank.
Withdrawals from that account can only be done in form of payment to builder/seller of new property.
Amount can be kept in such account for maximum period of three years. If no utilized by that time, income tax will be payable and withdrawal will require assessing officer's approval.
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