Investment of capital gain

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Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2014 My query is that can an assessee invest capital gain amount on his son's name?

Assessee has Capital Gain amount deposited in Capital Gain A/c , can he/she buy a new house on his son's name to invest capital gain and get exemption under sec 54 ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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15 April 2014 well capital gains account should be opened in the assessee's name. however, you can claim exemption even if the investment is made in son's name.

Rupesh Jain

Rupesh Jain (Expert)
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16 April 2014 under income tax capital gain exemption only available . when same assesse will invest the amount.

other wise no exemption will allowed.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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16 April 2014 Rupesh,

please refer CIT vs. Kamal Wahal 351 ITR 4.

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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16 April 2014 also P.K.Madhav , Hyderabad vs Department Of Income Tax on 1 January, 2013 ITA No.212/Hyd/11

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Querist : Anonymous

Querist : Anonymous (Querist)

16 April 2014 @Rupesh
whole amount is being invested by assessee only just the difference is it is on the name of Son.

@Nikhil
Thanks alot for clearing my doubt.
I would also like to tell you the capital gain a/c is on name of assessee only.

I would also like to ask , can you tell me the procedure to withdraw whole amount from such a/c to buy flat.

I went to withdraw amount but bank says you need CA certificate whereas i checked few sites online and saw just a "FORM C" is to filled.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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16 April 2014 well only Form C is required. However, it is possible that the Bank has asked for CA certificate as the investment is in another person's name.

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