Under section 82 of the Income-tax Act, 2025, where capital gains deposited in a specified bank or…

Under section 82(4)(a) of the Income-tax Act, 2025 (formerly s.54(2) of the Income-tax Act, 1961), if the amount deposited under section 82(2) is not fully utilised for purchasing or constructing the new residential house within the period specified in section 82(1), the unutilised amount is charged to tax under section 67 (capital gains) as the income of the tax year in which three years from the date of transfer of the original asset expire. Under section 82(4)(b) the assessee may then withdraw the unutilised amount in accordance with the scheme.

The period is always counted from the date of transfer of the original asset, never from the date of deposit. It is three years because section 82(1)(b) allows three years after the transfer for constructing the new house; two years is only the time allowed for purchasing a house after the transfer.