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Query Regarding CGAS , Payment other than builder

Tax queries 309 views 10 replies

Hi, I have purchased a flat by selling a long-term capital asset. (All conditions for exemptions are satisfied)

Over 80% of the part payment has been already given to the builder and the rest payment is scheduled for the month of DEC 2022 hence I am depositing CG in CGAS (Capital Gains Account Scheme).

My query is Today I went to the bank to open Acc, but the Bank manager told me he can issue DD or Cheque in favour of builder only which is ok. but there are various ITAT and HC Orders saying CG spent on making a house inhabitable is also eligible for exemption U/s 54 and 54F.

If I deposit let's say funds for furniture to be purchased in future when I get my possession in the CGAS account and that time, the bank manager denies to Issue DD in favour of a Person other than a Flat builder how will I be able to withdraw funds from the CGAS account for such activities despite ITAT orders?

Replies (10)

Read carefully, the meaning of inhabitable..

Originally posted by : Dhirajlal Rambhia

Read carefully, the meaning of inhabitable..

Yes furniture was included such as kitchen trolley etc

 

To clarify... any addition to the flat after builder obtaining completion certificate is not included...

Originally posted by : Dhirajlal Rambhia

To clarify... any addition to the flat after builder obtaining completion certificate is not included...

 

So after getting completion certificate one can not invest CG deposited in CGAS to utilising for house furniture?

 

Not at least for furniture, its termed as additional facility...

Originally posted by : Dhirajlal Rambhia

Not at least for furniture, its termed as additional facility...

Marble Flooring with material

Furniture & Fixture - Almirah TV Trolley,
Kitchen Wood Work

Wall Finish
Internal, Cement Plaster with Plastic Emulsion
External -Sand Face Synthetic
Paint on Door & Window (with material)

ETC where allowed for Case  ASSESSEE BY : S/Shri V.K. Jain & Nem Singh, Advocates
REVENUE BY : Shri B.R.R. Kumar, Senior DR

ITA No6109 /Del./2012

 

Agreed, for that you need to get written permission from ITO. As a rule framed for the banks, banks are restricted for such payments...

Originally posted by : Dhirajlal Rambhia

Agreed, for that you need to get written permission from ITO. As a rule framed for the banks, banks are restricted for such payments...

Ok. But obviously ITO wont give permission in "easy manner"

 

Correct, no fault of bank manager/s. But there are other, out of way, 'jugads' opted by our professionals...

Originally posted by : Dhirajlal Rambhia

Correct, no fault of bank manager/s. But there are other, out of way, 'jugads' opted by our professionals...

Ok thanks 

 


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