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Capital gains -bank account

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vijayakumar

proprietor

175 Points Posted on 28 July 2023

I have sold a small piece of plot < had a capital gain of 50 lac- this year. Can I keep this as a deposit in any bank & want o open a new account? BUT NOT TERM IT AS A CAPITAL GAIN ACCOUNT. i will not use this amount & will buy another flat within a year. Is this ok ? is it compulsory to open a capital gain account only? Pl guide. Thank u for sparring your time.

vijayakumar

Replies (6)

Quick Summary

This discussion explores options for managing capital gains from selling land. The user wants to know if they can deposit their ₹50 lakh capital gain into a regular bank account instead of a specific Capital Gains Account, as they plan to purchase another property within a year. The advice clarifies that to claim exemption under Section 54F of the IT Act, the funds must be deposited in a Capital Gains Account Scheme (CGAS) by the Income Tax Return (ITR) filing deadline, or the entire amount must be used to buy a new property. If not fully invested, tax is payable on the remaining balance.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212434 Points Posted on 28 July 2023

If you want to get exemption u/s. 54F IT act, you have to deposit the required amount in CGAS, 1988 acc ON OR BEFORE FILING RELEVANT ITR.

sabyasachi mukherjee

Profession Business

28246 Points Posted on 02 August 2023

Or he can utilize the entire portion in buying new property.

vijayakumar

proprietor

175 Points Posted on 03 August 2023

Yes sir. I want use the entire amount including its interest. My point is -interest is shown , appropriated for tax. I will pay capital gain tax to the extent of gain. if i partly use, i will pay tax for the balance. All these will be declared in the coloums.

Is this ok sir .capital account in bank has many hassle, difficult to draw back. This only makes weary.

Thank u for your time.