Capital gains(capital gains account scheme)

78 views 3 replies

A is 61 years old and sold a Residential Property to X for Rs 45 lakshs. Capital Gains arising from the same being 10.5 Lakhs. A deposited 11 Lakhs to CApital Gains account scheme in the same year of sale.

B, the son of A purchased the land in the next year of sale for 12 Lakhs. A utilized 4.5 Lakhs from the Capital Gains Account Scheme and gave it to B in support of Purchase of the land.

Can the amount in Capital Gains Account scheme be utilized to purchase Son's property? If not how is the taxability of the amount so withdrawn?

Replies (3)

No                        

The exemption can be reversed or withdrawn if the capital gain is not utilized within specified period.

The amount in the CG account scheme should be used for the specified purpose only. Otherwise, the amount used for other purposes shall be taxable

Yeah It is used only to purchase as per the provisions. My question was can it be used to buy the property for his son. 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register