Long Term Capital Gain

Dear Batra Sir I found this blog very useful.

My query is bit complicated My mother had some land(non agricultural) which was aquired by Govt and they paid us respective amount now we have long term capital gains of almost whole amount the govt paid I purchased NHAI bonds but still amount is remaining that has Capital Gain so i deposited in SBI capital gain saving account ( type A ) So am going to purchase new house...Now i have two questions 1. Whats the exact procedure to withdraw amount from SBI capital gain saving account ( A type )?? The bank says we will make DD on favour of person from whom u r buying property. Is it true?? or i can deposit in my saving account and later i pay to the builder. 2. Am buying 3 houses all are connected so will it act as single property as am doing a single registration....will it create any problem ??

Thank You.

asked Jan 07 '12 at 15:36 by Ankur_11988 111

Amount may be withdrawn from capital gain saving account only in form of payment to the seller/builder from which your buying new property or getting house constructed. Bank is right in saying same.

If all new properties are a single entity on paper, it won't create any issue. As per section 54F, only one residential property can be bought to save income tax on gains from sale.

answered Jan 09 '12 at 19:49 by Pankaj Batra 5.2k320


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Asked: Jan 07 '12 at 15:36

Seen: 2,292 times

Last updated: Jan 09 '12 at 19:49