Capital gains’ tax liability on selling a house

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SummaryThe real estate market is growing and this is evident from the hordes of advertisements in newspapers.

acquisition.

Depositing the money in Capital Gains Account Scheme

Although capital gains are required to be invested as mentioned above, sometimes a suitable property may not be available. In this event, the capital gains can be deposited in the Capital Gains Account Scheme (CGAS) before the due date for filing the tax returns, to stay eligible for the exemption.

The deposits with CGAS must be utilised within the specified period, i.e., two years if a property is purchased or three years in the event of construction of property. If the amount is not fully utilised, it shall become chargeable to tax.

The author is a director in KPMG. The views expressed are personal

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