Purchase of Land will not make you eligible for exemption!

Someone Asked on This blog

My father and mother are joint holders of land they intend to sell in April ‘07. Since they intend to use exemption u/s 54F, can the new land be purchased in name of only one of the joint holders or as only one of them as joint holder? Also, is it correct that we have to deposit the sale proceeds in capital gains bank account only before due date of filing returns for that AY ie. June 2008? Pl clarify
by komalds@.com

First of all remember , for land purchase there is no exemption provided under the I T Act. Either purchase a house or construct a house or keep the money in bonds issued by National highways or Rural Electricity (at present there are NO bonds in the market)

Since the land was jointly owned, there will be capital gains for both.Hence the house should be purchased in joint name within two years from the date of transfer or if house to be constructed , it should be within three years .

Capital Gains Account Scheme is for the reason that when you see that immediately you are not finding suitable house . In that case, open an account in any Bank under CGAS account and deposit the sums in that account before filing of return i.e July 2008(in your case) . The proof of deposit must be attached with the Return of income for claiming exemption.

You read other articles under Capital Gain label.