Operation of ltcg bank a/c

It appears that to save capital gains tax on LTCG, you wish to deposit funds in the "CAPITAL GAINS DEPOSIT SCHEME" If my presumption is correct, then you will have to proceed ahead under this scheme.

Till the time the amount of Long Term Capital gain is not utilized for the same, it should be deposited under the scheme of Long term Capital gain known as “CAPITAL GAINS DEPOSIT SCHEME” IN ANY NATIONALISED BANK. However, there is a ceiling of Rs.50.00 lacs for such deposit in a financial year (Hint: one can deposit Rs.50 lacs on 31^st March and deposit another Rs.50 lacs on 1^st April of the same year).

Further be guided as follows:-

        · If the long Term capital gain invested  within a period of one year before or two years after the date on which the transfer took place purchased another residential house property

        · Or ,  within a period of three years after that date constructed, a residential house, then, instead of the capital gain being charged to income-tax as income of the previous year in which the transfer took place, it shall be dealt with in accordance with the following way : -

-  If the amount of the capital gain is greater than the cost of the residential house so purchased or constructed the difference between the amount of the capital gain and the cost of the new asset shall be charged under section 45 as the income of the previous year;

-  If the amount of the capital gain is equal to or less than the cost of the new asset, the capital gain shall not be charged under section 45.

I hope the matter is amply clear. In case doubts still remain, I can be contacted at skguptafbd2@gmail.com