18 February 2009
I want to know that if any amount is invested in "Capital Gain Deposit Account Scheme" to avail exemption to Capital Gain from residential house property under Section 54; can the amount be used by drawing an overdraft on the FD(it will be used for purchasing another property only) instead of drawing the amount directly. The reason for the same is that the stipulated period of 3yrs u/s 54 is about to expire.In order to invest before the expiry of the period the F.D. will have to be pre-matured which will result in substantial loss. Please guide us regarding the same.
CAclubindia
