Capital gain account

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This query is : Resolved

krishna (Querist)

12 August 2017 Could you please answer below queries related to capital gain account

1. I have deposited capital gain amount in capital gain account. Now i want to start house construction. Do i need to get approval of Income tax officer before withdrawing money from capital gain account ?

2. The land where i am planning to build the house is a B khata site. BBMP does not issue building plan, completion certificate and occupation certificate for house on B khata site. Will it be an issue obtaining Income tax officer approval during closure of capital gain account ?

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)

12 August 2017 1. No, you needn't get any approval for withdrawing money from capital gains account for the construction purpose. Keep documentary evidence for expenditure

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)

12 August 2017 2. It won't be an issue. IT Act is not concerned about approval or plan etc.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

13 August 2017 1. O.K

2. ITO may ask for approved plan and completion certificate while seeking approval certificate for closing CGAS,1984.

krishna

krishna (Querist)

13 August 2017 In case approved plan and CC cannot be provided, can I get the house evaluation done from a independent certified evaluator and submit the report to ITO ?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

14 August 2017 Try with that to get the certificate from ITO.

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