1043 (Income tax ) How is Capital gain account different from other bank accounts?(Concept) Video Link - https://youtube/watch?v=KSBtdTwdAGk Methodology - Harvard Case Model Narration By - Amlan Dutta (1) How is capital gain account different from other bank accounts (2) Why is capital account termed so Short answers -There are accounts in a bank like savings , current and you can even fix deposits This is however a bit different account It is not comprised of money from your savings from salary etc etc ...it is from funds which arise because of gains from transfer from capital asset Say i sell a flat at Bandra for 300 Rs whose indexed cost is 200 Rs ...then the capital gains arising is 100 Rs ...i can go and store this gains in a capital gains account with any nationalised bank (2) If you understood point1 , you will understand point 2 as well Interesting part here is that ,money withdrawn from such capital gain account must be utilised for the new property or section under which CG exemption is being taken ...for example i cannot take out 20 Rs from that and have a samosa , but i can take 20 Rs out and build a roof for my new house (if section availed is section 54 ) I can now avail exemption for the whole 100 Rs and if called for quantifying the utilisation of gains to qualify for exemption will have to show capital gain account statement besides the new flat purchase ! So (1) Capital gain account statement for 20 Rs plus (2) New Flat price for Rs 80 both totaling 100 Rs which has been availed for LTCG exemption ( in this particulase case under section 54 ) Hope this helps , Peace , Amlan Dutta
Posted on: Wed, 29 Oct 2014 18:52:30 +0000
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