Can I save proceeds from a land sale in FDs?
In case, the assessee is unable to purchase or construct the new house till the date of filing the original return of income, the net consideration not utilized to purchase or construct new house shall be required to be deposited in Capital Gains Deposit Account Scheme with a specified bank by the due date of filing of the original tax return.
I sold my residential land for ₹50 lakh in January 2023. I had bought it for ₹2.15 lakh in April 2004. To avoid capital gains tax, I intend to invest the entire amount in buying a new house within next 6-7 months. Can I park the sale proceeds as FD in my SBI account till then or is it mandatory to open capital gains account to keep this money? If yes, what is the maximum time by which it needs to be opened.