Cgas 1988

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This query is : Resolved

suren (Querist)

30 July 2019 An assessee has opened Account A i. e. Savings Account under Capital Gain Account Scheme 1988 recently and claimed deduction u/'s 54 of the I T Act while filling return for A. Y. 2019-20.
He wants to transfer the funds now to Account B i. e. Term Deposit Account. Can he do this freely? As there can not be auto renewal of Account B, what happens if he opts for 6 months TDR? On maturity that amount will be transferred to Account A with interest if the amount is not utilised for buying new house. Can he again transfer the funds to TDR?
Is there any tax implications on such transactions?
Can transfer from Account A and Account B and vise versa allowed freely without any restrictions under the act?

suren

suren (Querist)

16 August 2019 Can experts reply for this query please? It would be highly appreciated.
Thank you.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

26 September 2021 YES SUCH TRANSACTIONS ARE ALLOWED, BUT DO NOT FORGET THAT TOTAL FUNDS IS REQUIRED TO BE INVESTED IN PURCHASE OF HOUSE PROPERTY, WITHIN STIPULATED TIME PERIOD.

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