The capital gains deposit account scheme

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 August 2013 On sale of residential plot the assessee
has deposited entire sale proceeds with a nationalised bank in the savings a/c under The Capital Gains deposit account scheme.
After sale but before opening the account the assessee' parents bought a flat with their savings in the name of assessee. Asseessee feels that he may return the amount to his parents from his capital gains account as he feels that he can afford the purchase with his own funds. Can he withdraw from the savings a/c of CG Scheme and return the sum to his parents as if he repays a loan?

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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21 August 2013 If the money was paid by your father and the flat was purchased in your name then it will fall in the category of 1 year before and you can do so and the capital gain can be claimed as exempted but you should execute an agreement with your father that he purchased the flat in your name by taking loan and now as you have paid the cost the same now belongs to you.