can capital money be deposited in Fixed Deposit for a month or two

i have sold a site for 40 lakhs in bangalore and i have kept this money in Fixed deposit. Within another 15-2o days of time i am buying a flat(has already found one-where that flat owner is making arrangements for khata extract, possion certificate etc.,). It looks like i should have deposited this amount in some type of an account of gain. Because of this short duration of Fixed Deposit will it affect. When income tax authorities ask for the details for the purchase will they object for this money of 40 lakh being kept in Fixed Deposit ? Can you please clarify.

Dr.M.Shanthakumar Mysore, 9986059109

asked Apr 23 '12 at 20:51 by shanthakumar 122

In case possession of new residential house property is not taken before last date of income tax return filing, then amount must be invested to capital gain scheme account to claim tax benefits.

So, say you sold site in FY 2011-12 and possession of new flat is taken before 31st July 2012, then there is no need to open a capital gain scheme account. You can invest amount anywhere in the mean time.

answered Apr 23 '12 at 23:16 by Pankaj Batra 5.2k320


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Asked: Apr 23 '12 at 20:51

Seen: 1,404 times

Last updated: Apr 23 '12 at 23:16