Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Why CGAS exists
Exemptions like Section 54 and 54F give you up to two or three years to buy or build a house — but your return is due sooner. The CGAS bridges the gap: if you haven’t reinvested by your filing due date, you deposit the unused gain into a CGAS account with a bank, and the exemption is preserved.
How it works
You open the account (Type A savings-style or Type B deposit-style) before the return due date and claim the exemption on the deposited amount. You then withdraw to pay for the new house within the time limit. If you don’t use it in time, the unused amount becomes taxable in the year the limit expires. Confirm the deposit deadline and withdrawal rules.
A worked example
Example: you have a ₹50 lakh gain in March but won’t buy the new flat until next year. Before filing (by 31 July), you deposit the ₹50 lakh into a CGAS account and claim Section 54 — no tax now. You withdraw it to buy the flat within two years. Fail to buy in time, and the ₹50 lakh is taxed then. Our team can set it up and track the deadline.