CAN the money gained from sale of shares held for more then 8 years ,be parked in capital gains account scheme under section 54F for 3 years,and used for buying property? Will it attract tax under capital gains and under CGAS account dep[osit ?Ans: As per section 54F, if you want to buy a residential house property from long term capital gain from sale of shares then you must buy the residential house property 1 year before or 2 years from date of such transfer of shares or construct the house property within 3 years from date of transfer of such shares. If amount can not be utilised before filing return then amount should be kept in CGAS. If the amount is not utilised by the above said time period of 3 years, amount will be taxable.
Sir In continuation of above answer by you on 13th Feb'23,request to clarify whether the gains from sale of shares to buy a property under 54F,can be a RESALE property or has to be UNDER CONSTRUCTION?
Ans: It can be resale property or under construction property but time limit for getting possession will be different so as to make eligible for exemption.
You must buy the residential house property 1 year before or 2 years from date of such transfer of shares or construct the house property within 3 years from date of transfer of such shares.