Why is India's capital gains account scheme a bridge with rules, not a parking lot for indecision?

Question

People sometimes say that if you have not yet used sale proceeds for the next qualifying investment in India, you can just put the money into the Capital Gains Account Scheme and sort it out later. Please explain why that idea is only partly true.

TaxGuided · Accepted Answer

The Capital Gains Account Scheme is useful precisely because real-life reinvestment rarely lands neatly before the return deadline. Tax law knows that. The scheme allows the taxpayer to bridge that timing problem instead of losing the exemption route immediately. But that does not make it a neutral parking space for indefinite delay. It is a conditional holding device inside a larger exemption story.

Once you understand that, the whole rule becomes less mysterious and much less forgiving than c

Why is India's capital gains account scheme a bridge with rules, not a parking lot for indecision?

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