20 June 2011
Mr X invests Rs 20 lacs in capital gains accounts scheme. What would be the rate of interest on such scheme? can the interest portion be withdrawn on the monthly basis n utilised for personal purpose?Is interest taxable on cgas?
20 June 2011
Interest rate varies from time to time as fixed by the RBI. Interest is taxable under the Income tax Act,1961. Interest alone can't be withdrawn from time to time with a view to use for personal purposes since every withdrawal is to be used for building construction. After the building construction is over, the balance lying in the account can be withdrawn on filing form G with the bank with the approval of the Income tax Officer.
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