Under section 82 of the Income-tax Act, 2025, the amount deposited under the scheme notified under…

Under section 82(1) of the Income-tax Act, 2025, long-term capital gains on transfer of a residential house are exempt to the extent invested in a new residential house purchased within one year before or two years after the transfer, or constructed within three years after the transfer. Capital gains not so utilised before filing the return must be deposited under the scheme notified under section 82(2). Under section 82(4)(a), any deposited amount not fully utilised within the specified period is charged to tax under section 67 as income of the tax year in which the period of three years from the date of transfer of the original asset expires, and the assessee may then withdraw it under the scheme (section 82(4)(b)). The period is reckoned from the date of transfer, not the date of deposit, and it is three years, not two, so the other options are wrong. (Formerly the proviso to section 54(2) of the 1961 Act.)