It was a plot of land in both Husband and wife's name purchased from Government in
June 2000. We had taken a loan for 5 years . Sold it 29th June 2008. Please tell us in view of the dates mentioned above
1.What is the time period we have till which we can buy a property to save tax on capital gains without depositing the CG money in a Capital gains account.
2.When does it become mandatory to open a Capital Gains account.
3.Is the total payment to be made within this period or staggered payment can be done from savings account over the period.

Renuka Chohan, Mumbai

The last date up to which one can buy without  deposit of money in CGAS is last  date of the financial year i.e in your case , as the land is sold in FY 2008-09 , the date 31/3/2009 is the last date by which sales consideration must be invested in  house property . If you do not do , you will have to pay tax .

After last date of financial year, in your case 31/3 /2009,if one wants to save on tax , it becomes mandatory to open a CGAS account and put the money in that account before filing return of income. So , if you are not required to be audited, the month of 31st July 2009 is the last by which you must deposit the money in CGAS account to save on tax.If your accounts are required to be audited, 30/9/2009 is the last date.

It can be staggered payment , but the time period is not changing , whether one does one time payment or staggered . However, if the amount is in CGAS , you get two years in which staggered payment from that account can be utilized for buying the property.