1) What is the last date when I can deposit the money in LTCG account so as to save tax? Is it 31-Mar-2011 or 31-July-2011 (Last date for IT return filings)?
Ans. The amount of the capital gain which is not appropriated by the assessee towards the purchase of the new asset made within one year before the date on which the transfer of the original asset took place, or which is not utilised by him for the purchase or construction of the new asset before the date of furnishing the return of income under section 139, shall be deposited by him before furnishing such return [such deposit being made in any case not later than the due date applicable in the case of the assessee for furnishing the return of income under sub-section (1) of section 139] in an account in any such bank or institution as may be specified in, and utilised in accordance with, any scheme which the Central Government may, by notification in the Official Gazette, frame in this behalf and such return shall be accompanied by proof of such deposit; and, for the purposes of sub-section (1), the amount, if any, already utilised by the assessee for the purchase or construction of the new asset together with the amount so deposited shall be deemed to be the cost of the new asset.
2) Do I need to deposit the complete difference between sale price and acquisition price into this account or do I need to deposit only difference between Sale Price and Indexed Cost of acquisition?
Ans. Yes only the LTCG amount needs to be deposited and not the entire sale consideration received.