13 September 2017
I had a flat. I sold that property and transfered all the sale amount to a new capital gain account ( instead of just a capital gain amount ) .
Later I invested in another property within 3 years and paid all the amount from this capital gain account. After paying all the amount for the investment I did, i have some surplus amount. Can you please advise on if I can use this surplus for renovation/ furnishing new flat? Can I make a payment to individual/ contractor from this account Or can I withdraw some amount as a cash also?
14 September 2017
You did the right thing by investing the entire amount in capital gain account scheme of nationalized bank for 3 years.under section 54 of IT Act. 1961. The surplus amount you can use in renovation or furnishing of new flat to save on Long time Capital Gains Tax. You can claim deduction on your tax liability on such miscellaneous expenses of the new flat.