Answer

1. F

   Facts

   Long term gain on a residential house is exempt under Sec 54 if invested in a new house in India, bought within 1 year before or 2 years after the sale, or built within 3 years. If not invested by the return due date, the amount must be deposited in the Capital Gains Account Scheme. The exemption is capped at ₹10 crore.

2. P

   Provisions and law

   • Sec 54 (now Sec 82)Long-term gain on a house is exempt if invested in another house in India within the time allowed
   • Sec 139(1) (now Sec 263(1))Return must be filed by the due date for the year
3. A

   Analysis

   If you invest ₹40 lakh or more in the new house within the time, the full gain is exempt under Sec 54 (now Sec 82). If you had not bought by 31 July 2026, the unused amount should have been deposited in a CGAS account by then; a belated return filer may face a challenge on this point, so get advice. If the new house is sold within 3 years, the exemption is reversed. Keep the deed and payment proof.

4. C

   Conclusion

   1. 1Work out the long term gain on the old house.
   2. 2Check purchase or construction dates of the new house.
   3. 3Deposit unused gain in CGAS by the due date if not invested.
   4. 4Claim Sec 54 in Schedule CG with details.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.