Section 54 of Income Tax Act

If the assessee sell a long term capital asset (land) and keeps the amount in a capital gain account scheme for 3 years can he use the amount for any purpose other than buying a residential property after 3 years??

Originally posted by : Mansi
	If the assessee sell a long term capital asset (land) and keeps the amount in a capital gain account scheme for 3 years can he use the amount for any purpose other than buying a residential property after 3 years??

Yes he can...but the original cap gains that was exempt would now be taxable at the end of 3rd yr since the money was not utilized for specified purpose.

You are eligible to get benefit deduction u/s 54 of IT Act.

 If any property sold by HUF  and also  purchased by  HUF  as per section 54 what  will do ?  my doubt is whose hands taxable above capital gain property    please send your  information  if its known . 

When is a property considered acquired u/s 54? Consider, a person acquired a property (residential land) in 2007 and registered it in 2011 and sold it off in 2012. In 2012, this person purchased another property (residential house). Does the provision u/s 54 apply?