Utilisation of Interest on CGAS & form of withdrawal

Reg.Long erm Capital Gains on sale of Immovable property.
1. can I utilise the interest for any other purpose? 
2. If the accrued interest can be credited to General SB Account?
3. In what form money can be withdrawn out of Capital Gain Amount for the purpose of reinvestment in condtruction/purchase? Cash, cheque or DD?
4.If a block of two or more apartments/villas contiuguous in nature be puecsed for reinvestment? What are the limitations of ONE HOUSE allowed? Thanks and regards.
Asked 5 months ago in Capital Gains Tax from Hyderabad, Andhra Pradesh
Yes the Accrued interest can be credited to General SB Account. 

The money from Capital Gains can be withdrawn for purchase of residential property with in specified period.

Only one residential property can be purchased with the CG amount.
Shyam Sunder Modani
CA, Hyderabad
955 Answers
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1No only the principle is enough to be spent on purchase of property. 

2.Interest you are free to use for domestic purpose. 

3. You can give standing instruction to CG to credit the same to your Savings Account. 


Shyam Sunder Modani
CA, Hyderabad
955 Answers
4.9 on 5.0
  Talk to Shyam Sunder Modani
Dear Sir,

1. You are free to utilise interest for other purposes.

2. Yes, accrued interest can be credited in S/B account.

3. Better avoid withdrawing the money in cash.

4. This is a question of litigation. Courts have conflicting views in respect of this.

Please feel free to call/revert in case of doubts.

Thanks and Regards,
Abhishek Dugar
CA, CS, B.Com
Abhishek Dugar
CA, Mumbai
761 Answers
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Dear Sir,

1. You are free to use the interest component in whatsoever manner you feel like.

2. The bank will transfer the amount to your savings bank account.

3. Buying 2 Neighbouring villas is a litigative area, you may claim the benfit by proving that it is not one house property but one as you are using it as a single property.

Trust this clarifies your query. 

Feel free to call back/ get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP.

Rohit R Sharma
CA, Mumbai
719 Answers
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I think Rohit is handling this query
Abhishek Dugar
CA, Mumbai
761 Answers
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The question is for Mr. Rohit thus will not comment
Shyam Sunder Modani
CA, Hyderabad
955 Answers
4.9 on 5.0
  Talk to Shyam Sunder Modani

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