| Question And Answer | |
|---|---|
| Subject: | sums deposited in capital gains scheme |
| Category: | Income-Tax |
| Querist: | BKS |
| Answered by: | Law Intern |
| Tags: | Capital Gains Account Scheme (CGAS), CGAS, Section 54F deduction |
| Date: | April 15, 2025 |
If one does not utilize amts deposited in capital gains scheme for more than 3 years, whether
1] how can one withdraw it after 3 years or m more ?
2] what are its tax implications ? LTCG or stcg? in which year?
3] can one again claim 54/54F against sums withdrawn by making fresh investment ?
The amount can be withdrawn after the stipulated period (3 years) by closing the account or making a partial withdrawal. The bank may require a certificate from a Chartered Accountant or a declaration that the amount was not used for the intended purpose. The Bank will report this fact to the IT Department.
The exemption claimed under Section 54/54F will be revoked if the amount deposited in CGAS is unutilized and the unutilized amount will be assessed as capital gains in the year in which the 3-year period expires.
The amount withdrawn from CGAS after the 3-year period cannot be reused to claim a fresh exemption under Section 54 or 54F.