Question ID : 29628

Capital gain u/s 54F

X an individual sold a land on 16.12.2016 for Rs 50.00 lacs, cost of acquisition was Rs 1.00 lacs acquired on 25.01.2005. During F Y 2016-17 Asstt year 17-18 he filed his ITR by depositing Rs 50.00 lacs in capital gain account of SBI as he did not purchase a residential house property in this year, and decided to purchase after one year. In the mean while X expired on 25.01.2018 leaving the amount of Rs 50.00 lacs in Capital gain account of sbi as it is. Now my query is how to use this 50.00 lacs in capital gain account of sbi. Wife was nominee of this account, and banker are ready to give the money to wife. But whether wife of X should acquire a house property of Rs 50.00 lacs to sustain the claim us 54F now, or what other matter should be look forward in this regard.

Yes, he has to purchase a house to sustain the claim us 54F. She is required to file an application in Form C. She is required to furnish in Form ‘D’, in duplicate, the details regarding manner and extent of utilization of amount of immediately preceding withdrawal. She is also required to seek an approval of the assessing officer in Form H who has jurisdiction over deceased depositor and submit to bank at the time of closure of accounts.