India, April 19 -- Amit, a salaried professional in Bengaluru, sold his residential flat for Rs.1.2 crore, earning a long-term capital gain of Rs.45 lakh. Instead of paying tax on this gain, he planned his reinvestment wisely. Within six months, he booked an under-construction apartment and used part of the gains as the down payment.

Since the project would take time, he deposited the remaining unutilised amount in a Capital Gains Account Scheme account before filing his income tax return. Over the next two years, he systematically withdrew funds from this account to pay the builder as construction milestones were completed.

When you sell a property, capital gains arise. However, you can save on paying taxes on capital gains by utilisin...