Sir, if my capital gain after indexation for sale of residential property in current financial year is Rs 67 lakh, can I invest Rs 50 lakh in tax saving bonds this year, deposit Rs 17 lakh in capital gains account, and deposit the remaining in tax saver bond from that account in the next financial year? Please advise.
Ans: No, to avail the benefit of specified bonds, Investment must be made within 6 months from date of transfer of asset (i.e. residential property) and maximum exemption of Rs 50 lakh is available.
Option of investing in a Capital Gains Account is available in case you plan to invest an amount of Long Term Capital Gain earned from a residential property into another residential property and you are unable to utilize money in construction or buying a new property before filing Income Tax Return.