Capital gain ac

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Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2014 Hi

One of client sold the property in Aug-13, and before e-filing of his returns FY-13-14 he would like to open the capital gain ac to reduce the tax amount and further purchase of property in coming years.

but in that capital gain amount 25% nearly utilized to purchase of property in his spouse name. hence at present he has only 75 % nearly having capital gain funds with him.

my question is whether he can open the capital gain ac with 75% amounts or he need to be open with the 100% capital gain amount.

Please clarify.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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12 June 2014 Can open an account under Capital Gains Account Scheme,1988 with 75% of the Capital gain amount.

Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2014 Sir,

One more thing even the property which is purchased with 25% amount is an installment of Flat purchase in the name wife & husband.

is we need to show the 25% of property details to IT Returns or not necessary.

as you suggest we will go with 75% of funds to open an capital gain ac

Nikhil Kaushik

Nikhil Kaushik (Expert)
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13 June 2014 in the tax return, you will claim both the exemption for 25% and 75% in the same row "Deduction under section 54/54B/54D/54EC/54F/54GB"

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Querist : Anonymous

Querist : Anonymous (Querist)

13 June 2014 Hi,

now can we open capital gain Ac with 75% amount ?

If we opened an ac how long we need keep the funds in capital gain ac like 1 year or 2 years.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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13 June 2014 you need to use it as early as possible. but please remember that you shall be allowed deduction against only one house. if you buy more than one house, deduction shall be permitted against only one of the houses.

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Querist : Anonymous

Querist : Anonymous (Querist)

13 June 2014 Hi,

Hence we have an idea that now what we paid the amounts 25% towards Purchase of a Flat. Its not a fully payment to buy the Flat and its an installment.
In future i mean coming 6 to 10 months we need to pay more than 75% amount what we have in our hand to occupy that flat,
hence can we show the same house in IT Return to file the return, but how could we open an capital gain ac means we need keep some of duration in bank like 2 or 3 years.
one more thing this flat will be in the name of wife & husband.

Could please suggest me in this concern.

Thanks in Advance

Nikhil Kaushik

Nikhil Kaushik (Expert)
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13 June 2014 i think you have misunderstood the provisions of income tax act and capital gains accounts scheme.

3 years the maximum period you can keep the money. you are free to use it at the earliest possible.

you can buy the house in the husband's name or both husband and wife's name. exemption won't be affected.

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Querist : Anonymous

Querist : Anonymous (Querist)

14 June 2014 Hi,

If He purchasing the Flat on his Spouse name, is he can claim the capital gain Exemption in his IT Return ?

Thanks In Advance...

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