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Utilisation of Capital Gain money

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vsraj

administration

137 Points Posted on 13 August 2022

Capital Gain on Sale of House Property as on 30th May 2021 is Rs.10,20,000.(Deposited in the Bank under Capital Gain account on 30th May 2021. On 30th August 2022 I am buying a new Flat for Rs.40 lakhs. Money deposited in Capital Gain A/c is accumulating with interest to Rs.10,58,250 as on 30th August 2022.

I am paying Rs.10,50,000 to the seller from the capital Gain Account. . The .Balance of Rs.8250 can I utilise for buying Stamp paper for Registration of the Sale Deed Or can I utilise the amount for other miscellaneous expenses during Registration of the Sale Deed.

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Quick Summary

This discussion explores the utilisation of capital gains money from the sale of a house property. The user deposited Rs.10,20,000 into a Capital Gains account and is now purchasing a new flat for Rs.40 lakhs. The question is whether the accumulated interest and a small remaining balance can be used for expenses like stamp duty and registration fees for the new property.