Excess amt deposited in Cap Gain Account by mistake

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  1. PALAMADA

    PALAMADA New Member

    I invested an amount of RS 40 lakhs into a capital gain account with a Nationalised bank against capital gain of RS 36 lakhs 3 years back. I used the account to pay a builder a few instalments to the tune of RS 34 for an apartment.The amount utilised from this account was thus RS 34 lakhs. Before opening this account, I had paid RS 30 lakhs to the builder for the apartment, but I failed to take that into account in computing the cap gain balance to be deposited, but ignoring that. Now I wish to use the balance RS 6 lakhs for carpentry ( interiors to make the house habitable) etc through a different service provider, not the builder. The service provider is also a corporate and is properly covered by invoice etc, with due payment of service tax et all. The bank says they can only issue payments to the builder. Is this a correct position the bank is taking? Are there precedents or clear legal position I can quote to get this from the bank without hassles. I am willing to and will, submit the withdrawal to tax in any case, but can i get it done with the bank. Can I insist the bank deduct 20 PC if it wishes to create a trail and allow me to withdraw the rest?
     
  2. Yatin Gandhi

    Yatin Gandhi Active Member

    You should approach your income tax officer and explain him your case.

    He will then grant the permission for utilisation of amount for the purpose of carpentry
     
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