Capital gain

Dear Aradhana,

no the account cannot be used for any purpose other than the purchase/construction of immovable property. this account is to be used only as per the scheme of the account

thank u for rply. i agree wat u said bt yesterday i was in bank and a lady asked d same ques to manager and manager give advice to ask d same to her C.A.   den lady said dat C.A told her dat last year max. withdrawal was rs 25000 per day  nd last year lady pay salary form capital gain  account.bt i have read dat we cant use Capital gain .

you are welcome…ideally it is not allowed….however, the bank may allow since it has no control over the party to whom the payment is being made to.

However, you may face a problem in the income tax….

I suggest, don’t do it

By the way, you are asking this for academic purpose or have a live case???

its live case. nd i want to knw becoz i was nt agree wat d lady said to manager.as a ca student i really want to knw the legal advice.thanks . 

Look Aradhana,

If you are asking for a legal advice, you cannot do it since it will defeat the purpose of a capital gains account.

So also, even if the bank does allow the withdrawal, I do not suggest you to do it and then take up unnecessary litigations….

Also if you have any other queries, you may ask…

Amt can be withdrawn for paying salary to workers but this amount would become taxable as it is not being used for the specified purpose...

Moreover, there is no such limit for withdrawl from Capital Gains Account scheme

Refer this link for more details - https://www.charteredclub.com/capital-gains-account-scheme/

Salary can be paid but exemption will not be allowed in Income Tax

thanks a lot anil ,neha nd ankit.