Capital gain account
Sudeshna Basu
(Querist) 23 June 2013
This query is : Resolved
My father had old 2 properties- 1st on 24.8.11 & 2nd on 25.10.11. He has made a Capital Gain A/c of the total sum on 30.1.12. How long can he keep the money for short term capital gain?
Regards
s basu
Anirudh
(Expert) 23 June 2013
The amount of capital gain deposited in the specified account, has to be utilised for the purchase or construction of the new asset within the period specified. If not utilised then the unutilised amount of capital gain will get taxed.
The question of short term capital gain which you are talking about seems to be out of some wrong understanding by you of the provisions of law in this regard.
Rajendra K Goyal
(Expert) 23 June 2013
Your father has to open capital gain account. All the withdrawal from this account should be made only for purchase of property. However if he failed to buy a property within three years after selling property the whole amount will exposed to Long Term Capital Gain.
Agree with Expert Anirudh ji for short term capital gain.
