Capital gain account

[shripad mungi]

I sold my flat. I have open new capital gain account and kept 50 lakh rupees in it. After 9 months I need to purchase new flat. Actually my capital gain amount was 25 lakh only, but I kept all amount after sale of flat i.e. 50 Lakh. Now for new flat booking I need 5 lakh for booking amount + 3 Lakh Stamp duty + 4 Lakh GST = 12 Lakh.

Builder said he will give the 'Demand Letter' only after deposit of ₹ 12 Lakh. Bank said they will not issue any cheque without Demand letter from builder. So I am not able to use the money kept in capital gain account.

How can I book the flat ?

[DR.MARIAPPAN GOVINDARAJAN]

The builder's view is not logic. How can a amount be deposited without a demand letter? If it is deposited it would amount to advance deposit.

AI Summary

Capital gain account funds: builder's demand for a demand letter cannot logically bar payment for a new property booking. A seller deposited sale proceeds into a capital gain account and now requires withdrawal to book a replacement flat, but the builder demands a demand letter and the bank refuses to issue a cheque without it. The advisor states the builder's requirement is not logical and that depositing money without a demand letter would amount to an advance deposit, without providing further procedural guidance.