Capital gain
This query is : Open
03 July 2013
A friend of mine had sold an ancestral property. Right now he is not planning to purchase a new property. Now as per my knowledge he has the following options :
(1) To keep the money in a Capital Gain A/c with bank (2) Invest in Govt. Bonds (REC or National Highway)
I would like to know the following : Is there any lock-in-period for both the options? If the money is kept for full lock-in-period in bank or bonds, then money withdrawn after full term is taxfree or not?
(1) To keep the money in a Capital Gain A/c with bank (2) Invest in Govt. Bonds (REC or National Highway)
I would like to know the following : Is there any lock-in-period for both the options? If the money is kept for full lock-in-period in bank or bonds, then money withdrawn after full term is taxfree or not?
03 July 2013
A. BANK ACCOUNT:
Money withdrawn even after lock in period from capial gains bank a/c will be taxable in the year of withdrawal.
.
Actually, this facility is to be used when there is an intention of buying a residential house-
WITHIN THE PRESCRIBED TIME LIMIT FOR CONSTRUCTION OR PURCHASE WHICH IS STIPULATED FROM THE DATE OF TRANSFER OF THE CAPITAL ASSET.
.
BONDS: No tax if withdrawn after the lock in period.
.
Money withdrawn even after lock in period from capial gains bank a/c will be taxable in the year of withdrawal.
.
Actually, this facility is to be used when there is an intention of buying a residential house-
WITHIN THE PRESCRIBED TIME LIMIT FOR CONSTRUCTION OR PURCHASE WHICH IS STIPULATED FROM THE DATE OF TRANSFER OF THE CAPITAL ASSET.
.
BONDS: No tax if withdrawn after the lock in period.
.
Message likes :
1 times
04 July 2013
Thanks a lot Sir. Sir one more thing I would like to know about lock in period in bonds. Is it 3 years or 5 years. Another thing for which I seek your guidance is that if the legal heirs of the ancestral property are more than one (they are 3 brothers & 1 sister), how would be the cost and capital gain derived in hands of each.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Scrutiny and reopening of past returns
- Booth for sales promotion
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- F & O PROFIT REPORTING FOR AY 2026-27
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
