• Capital gain account money utilization

I put my money in capital gain account scheme. In account type A. After two years if I using capital for construction of residential house by buying plot. It is necessary to shift from account A to account B because 2 years passed. If I keep money in type A any tax issues will arise ?
Asked 7 months ago in Capital Gains Tax from Delhi, Delhi

I think there will be some issues because government has made two seperate specific type of account for different purposes. So you need to keep the money in which it needs to be.

Initially I think there will be no problem but if an assessing officer opens your case then I feel there will be a problem. So it's better to shift your money to type B account.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
1204 Answers
11 Consultations

5.0 on 5.0

Hi,

- Type A is saving account and Type B is Term deposit account. There is no need to transfer from type A to type B after 2 years. In both the accounts, period of 3 years is available for exemption purpose.

Thanks

Vivek Kumar Arora
CA, Delhi
2270 Answers
100 Consultations

5.0 on 5.0

Hi,

No, it is not necessary to shift from account A to account B.

You can keep money in type A without any tax issues.

Payal Chhajed
CA, Mumbai
1893 Answers
14 Consultations

5.0 on 5.0

Hi

There is no need to shift money from account A to B.

In simple language, Deposit Account A is like your savings account and Deposit Account B is similar to Fixed Deposit/Term Deposit. You will receive interest equivalent to savings account interest on Account A i.e. 4% p.a. Similarly, an interest rate of Account B is same as Fixed Deposit Interest rate depending on the maturity.

Abhishek Dugar
CA, Mumbai
3576 Answers
168 Consultations

5.0 on 5.0

Hi,

You don't need to shift your money from type A account to type B account. There is no such rule that after two years, you will have to shift the money

Lakshita Bhandari
CA, Mumbai
2812 Answers
116 Consultations

5.0 on 5.0

Hi,

You don't need to shift your money from type A account to type B account. I am not aware of any such condition whereby after 2 years you need to transfer from one account to the other.

Regards,

Nikhil.

Nikhil Khanna
CA, Mumbai
1429 Answers
19 Consultations

4.8 on 5.0

Yes you can do that but you need to transfer your money from type A Account to type B and the construction should complete within 3 years from the date of sale.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
1204 Answers
11 Consultations

5.0 on 5.0

Yes, you can do so but the construction should be completed in that (third year) itself.

You should get your hosue constructed within 3 years from the date of sale of old house. That's the key.

Abhishek Dugar
CA, Mumbai
3576 Answers
168 Consultations

5.0 on 5.0

Hi,

You can buy a plot after 2 years but you need to get the house constructed on it within 3 years from the date of sale of old property

Lakshita Bhandari
CA, Mumbai
2812 Answers
116 Consultations

5.0 on 5.0

Dear Sir,

Hope you are doing well !

Yes, you can do that but make sure that the construction should be completed within a period of three years.

Thanks & Regards,

Payal Chhajed

Payal Chhajed
CA, Mumbai
1893 Answers
14 Consultations

5.0 on 5.0

Yes you can do so but ensure that the construction is completed within 3 years.

Nikhil Khanna
CA, Mumbai
1429 Answers
19 Consultations

4.8 on 5.0

Hi,

- Yes everything should be completed within 3 years from the date of transfer.

Thanks

Vivek Kumar Arora
CA, Delhi
2270 Answers
100 Consultations

5.0 on 5.0

Yes, you can provided construction will be completed within 3 years from date of transfer.

Karishma Chhajer
CA, Jodhpur
936 Answers
4 Consultations

5.0 on 5.0

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