Withdrawl from Capital Gains Account to invest in Bonds

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  1. J.Das

    J.Das New Member

    I have deposited long-term capital gains from sale of residential property in a Capital Gains Account of a designated bank. Can one utilize part of this amount to purchase Capital Gains Bonds (Rural Electrification Bonds) within 6-months of the sale of the property? Or can the deposited amount only be used to purchase property to keep it tax-free?
     
  2. rudrabose

    rudrabose Active Member

    You can withdraw the amount from the Capital Gains Account to purchase either REC Bonds or Residential Property

    Exemption is allowed in both the cases
     
  3. J.Das

    J.Das New Member

    Thanks Mr. Rudrabose. Is there any case law or statute supporting this?
     
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