Income Tax Exemption on Property Sales

Reinvesting in another property to claim the income-tax exemption

I sold 5 residential plots on different months. I mean 2 in August, 3 in September and 1 in October for Rs. 1 Crore. Can I Invest the entire amount in another residential vacant plots to claim income-tax exemption? What is the time limit for reinvesting in another property to claim the income-tax exemption? Alternatively can we reinvest part amount in vacant residential plots and park some in capital gains savings a/c so that we can book an apartment under construction in another city and make the payments as the construction progress. What is the time limit for utilising the amount in capital gains account?

As per Section 54F of Income-Tax Act 1961,

An Exemption from the capital gain tax arising on sale/transfer of long term capital asset (other than a residential house) can be claimed, if the tax payer purchases a residential house (New property) within 1 year before or 2 years from the date of sale or constructs a new property within 3 years from the date to sale, subject to prescribed conditions.

The new property should consist of residential house either purchased or constructed on the plot of land. The capital gain proceeds to the extent not utilised before the due date of filing the return of income (For the year in which the capital asset was sold) can be deposited in the prescribed capital gains account scheme. This amount should be utilised for the purchase/construction of new property within the period as specified above to avail the exemption of the capital gains tax.