Vimala v. Sankar
Case brief
What is this about?
The court permitted petitioners to close existing fixed deposits and reinvest proceeds into capital gain bonds for five years to mitigate capital gains tax, with funds to be returned to the court after maturity for the benefit of minors.
What did the court decide?
Permission to foreclose fixed deposit receipts, sell property, and invest proceeds in Capital Gains Bonds for five years instead of standard fixed deposit.
What the court decided
C.M.P.No. 22304 of 2019 in C.M.A.No.2395 of 2017
C.M.P.No.22304 of 2019 in
C.M.A.No. 2395 of 2017
R.SUBRAMANIAN, J.
By an order dated 08.08.2017 while allowing the appeal and
permitting the appellants to sell the share of the minors in the property, the appellants were directed to deposit the minor's share of Rs.89,27,100/- in a fixed deposit in any one of the nationalized banks and put the deposit receipts in the
custody of the District Court, Tiruppur. The said order has been complied with.
- Now, the petitioners seek modification of the order in view of the
fact that if the sale proceeds are deposited in a nationalized bank in an ordinary fixed deposit, the same will attract capital gains to the tune about Rs.17,00,000/. Therefore, a request is made to enable the petitioners to deposit the sale proceeds in the capital gains bonds so that it will be advantageous to the estate of the minors. I see no difficulty in granting the said permission in view of the fact that the minors will be benefited by such modification. Hence, the directions
made in the order with reference to deposit of the sale proceeds is modified as follows:-
Issues for consideration
2 issues framed by the court
Whether permission can be granted to deposit sale proceeds of minor's share in capital gain bonds instead of ordinary fixed deposit to avoid capital gains tax.
Whether the proposed modification would benefit the minors.
Parties & counsel
- petitioner
The Petitioners
- respondent
The Minors (through LRs)
Coram
R.Subramanian
Case details
As recorded by the court registry
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