Sale proceeds of property sale - utilisation

venkat b. (Querist) 07 August 2017 This query is : Resolved
sir,

I sold off my parental property and want to know whether I can utilise the funds till I buy another house. And also please tell me whether I can reduce my capital gains by claiming the payment made to the bank where my fathers property was under loan. I had cleared the loan alongwith my brother after the demise of my father. regards.

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B.Chakrapani Warrier (Expert) 08 August 2017
You can't utilize the sale proceeds except the capital gins portion as you wish. But the capital gains portion should be deposited in 'capital gains accounts scheme, 1984 ' on or before the due date for filing the return of income to get tax benefit if you did not buy / construct the new house with in that time. Money paid by you to discharge the liability created by your father on the house can be deducted while arriving the capital gains.

Rajendra K Goyal (Expert) 08 August 2017
Show all documents to local tax consultant and discuss in detail.

Amount paid to Bank installment / interest is doubtful to enjoy benefit in taxation while computing Capital gains in the present given scenario.

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