Capital gains arise when the consideration received on transfer or sale of a property is more than its indexed cost. The amount of capital gains that is not appropriated by an assessee towards the purchase of another property within one year from the date of transfer of the original property, or that is not utilised by him for the purchase or construction of a new property before the date of furnishing the return of income, should be deposited by him in a specified nationalised bank. The amount should be invested in a ‘Capital Gains Account Scheme’ under the Capital Gains Account Scheme, 1988. The scheme is applicable to all assessees having capital gains. The deposits may be made in one lump sum or in installments at any time. The amount should be deposited before the due date for filing income tax returns.

Who are eligible to take the advantage? – Mainly, the advantage of Capital Gains Account Scheme can be derived by individuals and Hindu Undivided Family. To be more precise, all those tax payers who would like to invest in buying a residential property or in constructing a residential property so as to save tax in respect of long-term capital gain can find much advantage in this scheme known as Capital Gains Accounts Scheme 1988.

Before analysing the salient features of this scheme, it may be recalled here that to save tax on capital gain, various provisions are contained in the Income Tax Act, 1961 whereby if investment is made within two years from the date of sale one can save capital gain tax in respect of long-term gain, especially if the investment is made in acquiring another residential property.

Similarly, if the tax payers were to construct a residential property then the time period for completing the construction is within three years from the date of sale. Now, in between comes the role of Capital Gains Accounts Scheme.

All those tax payers who are taking advantage of the above mentioned schemes of making investment in residential property are advised to take advantage of the Capital Gains Accounts Scheme, especially if they are not able to make investment in residential property by the last date of filing the income tax return.

For example, if a person derives long-term capital gain on April 10, 2010, in that event he must make the investment in acquiring new residential property within two years from the date of sale or when the said property is proposed to be constructed then within three years from the date of sale.

However, there is also a condition that if the tax payer is not able to buy or construct the said property by the last date of filing the income tax return, in that event the amount has to be deposited in the Capital Gains Accounts Scheme. For example , as mentioned above, if the property is sold on April 10, 2010, the tax payers can buy or construct the property by July 31, 2011, which happens to be the last date of filing the income tax return.

In a situation where such purchase or construction is not completed by July 31, 2011 in that event the money must be deposited on or before July 31, 2011, that is, the last date of filing the income tax return in terms of the Capital Gains Accounts Scheme.

List of Banks  who can Accept Deposit – The account under Capital Gains Accounts Scheme cannot be opened in all the branches and with all the banks. The government has identified the following 28 banks to accept the deposit under Capital Gains Accounts Scheme 1988.  These banks are: State Bank of India, State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Indore, State Bank of Mysore, State Bank of Patiala, State Bank of Saurashtra, State Bank of Travancore, Central Bank of India, Bank of India, Punjab National Bank, Bank of Baroda, UCO Bank, Canara Bank, United Bank of India, Dena Bank, Syndicate Bank, Union Bank of India, Allahabad Bank, Indian Bank, Bank of Maharashtra , Indian Overseas Bank, Andhra Bank, Corporation Bank, New Bank of India, Oriental Bank of Commerce, Punjab & Sind Bank & Vijaya Bank. All branches of these banks except the rural branches are authorized to receive the deposit and maintain account under Capital Gains Accounts Scheme, 1988. Other than the above, no other bank is authorized to accept the deposit under Capital Gains Accounts Scheme.

Account Type Under Capital Gains Accounts Scheme- Under the scheme there can be two types of accounts.

Deposit Account A: This account is like a savings deposit account. Withdrawals may be made from the account from time to time, subject to other conditions of the scheme. This account is suitable for assessees who are planning to construct a house over a period of time.

Deposit Account B: This account is like a term deposit that is payable after a fixed period of time. The interest earned on the deposit may either be withdrawn periodically or it may be reinvested.

In order to open the account, an assessee must fill up the prescribed application form in duplicate. Further, the type of account – A or B – is to be specified. In case Deposit Account B is opted for, it has to be specified whether the account will be cumulative or non-cumulative. The proof of such deposit should be attached with the income tax returns.

Both the accounts will be eligible to interest as per the guidelines of the Reserve Bank of India. Moreover, a depositor may make or change nominations to the account by filling in the relevant forms.

The amount can be utilised in accordance with the scheme which the Central Government may frame. The amount withdrawn should be utilised for the purpose of purchase or construction of a house.The amount withdrawn should be utilised for the purpose within sixty days of the withdrawal. Any unutilised amount should be redeposited in Deposit Account A.

The amount already utilised by an assessee for the purpose of purchase or construction of a new property together with the amount deposited will be deemed to be the cost of the new property. In case the amount deposited is not utilised wholly or partly for the purchase or construction of the new property within the period specified, then the unutilised amount will be charged as income of the previous year in which the period of three years from the date of the transfer of the original property expires.

Further, an assessee will be entitled to withdraw the amount in accordance with the provisions of the scheme.

The withdrawals from Deposit Account A can be made through a prescribed form. In case of Deposit Account B, a depositor will first have to transfer the amount to Deposit Account A,and then make the withdrawal. The amounts can be transferred from one branch of a bank to another branch of the same bank only. A depositor may close the account with the approval of the assessing officer.

Forms C and D – Similarly, it is possible to convert the deposit Account B to the deposit Account A. As and when the money is required to be withdrawn for the purposes of making payment for the residential property, the assessee shall apply in form No C.  After receiving the application the bank shall permit the withdrawal of the amount. It may also be noted here that where the amount of withdrawal exceeds Rs 25,000, the bank will make the payment by way of crossed demand draft drawn in favour of the person to whom the depositor intends to make the payment.  Tax payers should also note that other than the initial withdrawal later on when the withdrawals are made by the tax payers, they shall furnish in Form No D in duplicate, the details regarding the manner and the extent of utilizing of the amount in respect of the immediately preceding withdrawal. The bank after receiving two copies of Form D from the accountholder will retain one copy and return the other copy to the tax payer.

Forms E and G- The scheme further provides that the amount which has been withdrawn should be utilized for purchase or construction of the property within 60 days from the date of such withdrawal. The facility of nomination is also available to the deposit holder by filling up Form No E.  Finally, when the property has been purchased or the construction has been completed and now the tax payer desires to close his Capital Gains Account Scheme then he shall make an application with the approval of the assessing officer. The application for closure of the account will be in Form G. Whenever you are contemplating to make a deposit in respect of Capital Gains Account Scheme, either by way of a savings account or a fixed deposit account , then please remember that you do not open the normal savings bank account or a normal saving bank deposit but specifically fill up No A and then make the deposit with the concerned bank under the Capital Gains Accounts Scheme.

Opening a bank account for Capital Gains Account Scheme– Once the deposit is made by you either in the savings account or in the fixed deposit account, please ensure that it is clearly mentioned in the account opened that it is for Capital Gains Account Scheme. A large number of tax payers commit the mistake of just opening a bank account with a bank to save capital gains and later on use the money for buying or constructing the residential property.  But please do remember that the income tax law very specifically provides that the money which has not been used for buying or constructing a residential property, such money should be kept exclusively under Capital Gains Accounts Scheme under a separate bank account in terms of Capital Gains Accounts Scheme.  Also do remember that the deposits in these accounts can be made in one lump sum or in instalment.

Things to Keep in Mind

  • CGAS does not allow any withdrawals, except for the specified purpose (of buying the house), even of interest. More, the investor is required to pay tax on this interest (to which he has no access) on an accrual basis out of his other income.
  • Even if the sale is effected in, say, the first month of the financial year (say, April 2011), the taxpayer may deposit the amount in CGAS on the last date for filing returns. In other words, he can freely utilise this money for 15 months (April 2011 to July 2012) as he likes.
  • We have already discussed the fact that if the amount is not utilised wholly or partly for the desired purpose, within the specified period, the unutilised amount shall be treated as capital gains of the year during which the specified period expires.

(Republished with Amendments)

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86 responses to “Capital Gains Accounts Scheme – How to open / Tax Benefits”

  1. Pushkar Bhatt says:

    Sir I hv sold an ancestral land and want to invest taxable amount in house property and balance in baonds…but erroneously I have deposited entire 80 lacs in cgas whereas 60 lacs was meant for buying property and balance 20 lacs to invest in purchasing nhai exempt bonds. But since in cgas 1988 it’s mentioned that whatever amount deposited in cgas account can only be utilised to purchase property I am in a dilemma…how can I use 20 lacs deposited in cgas ac for purchase of nnhai exempt bonds without attracting tax on this withdrawal??? Pls help urgently

  2. RAVI KRISHNA IYENGAR KRISHNA IYENGAR says:

    Dear Sir,

    You have not covered the case of LTCG wherein the amount i finalise after indexed values is put in govt infrastructure bonds straight away upto the tune of rs. 50 lakhs. the balance amount i calculate IT at 20 % and pay the IT. do is still need a CGAS to be opened in a bank?

  3. Kumar says:

    My father property sold on july 2016 and got my share and immediately put in fixed deposited. I am not aware of captial gains account. Till now in fixd deposit.
    Please suggest now, how to save tax?
    Please kindly advise.

  4. Vaibhav says:

    what are the implications if an assessee has deposited the amount in savings account instead of CAGS and return for the FY is yet to be filed ? Will it be taxable as LTCG ?

  5. vinay says:

    sir, i have to sell a property but the buyer was making a payment in advance and the final payment will be made in 4 to 5 months. the advance which received was deposited in my normal saving a/c or to open under LTCG in bank. later i want to invest the full amount under the scheme of 54EC. please advice

  6. VED PRAKASH says:

    i have purchased a property in year 2000 and sold the same in august,2017.how can i save capital gain tax without purchasing a new property

  7. VED PRAKASH says:

    I HAVE PURCHASED A PROPERTY IN YEAR 2000
    AND SOLD IN AUG.2017.HOW I CAN SAVE CAPITAL GAIN TAX WITHOUT PURCHASING A NEW PROPERTY

  8. puneet says:

    I have an Capital gains account in SBI. Which form is required to be filled for partial withdrawal, complete withdrawal ?
    also guide what all documents are required by the bank to allow withdrawal and which income tax office can approve the closing of bank account.

  9. Mohammed says:

    Capital gain account was opened in a nationalized bank by my father in law aged 75, and nominee is his son aged 40, and it was utilized for constructing a building for their wards for their own use,part payment was issued to build almost 50% of the amount,now my father in law was expired 3month back,we got legal heir certificates,and no objecting certificate,to receive the balance amount to compete the project,but the bank is delaying for disbursing the amount,sir what is the procedures to get the amount earlier,we are residing at chennai,plz reply

  10. Sivanarayanan Sekar says:

    Can I withdraw for the purpose of investing to purchase a second hand house ( approximate 15 years old)

  11. Sivanarayanan Sekar says:

    Can I withdraw for the purpose of buying a second hand house (approx 15 years old )instead of new house please

  12. Jai Singh says:

    i have sold a flat tin Mar 17 which was bought about 20 years ago.
    I intend to deposit the amount received from the sale in a capital gain account scheme.
    Can somebody please guide me how much do I depoisit in the capital gain account scheme, the complete proceeds or only the capital gain on the sale.

  13. Jai Singh says:

    I am planning to sell my property(Flat) for Rs.(47 Lakh) before Mar,17 which I bought in the year 1996 for Rs.(4 Lakh). I will be buying a flat of value around (90 lakhs) within a year or next year. Should I open Capital Gain Account immediately or at what time. Please suggest

  14. Ravindra babu says:

    I have deposited the money as FDR’s under “Deposit account-B” for 12 months. The bankers have renewed the deposits only after 9 months on the expiry of the FDR’s (after12 months of deposit) for a further period of 12 months. Under the INTEREST’s as per Capital Gains ccount Scheme 1988, the interest {8 (1)} at such rate as may be specified by the RBI, from time to time…………
    Here the bankers have not informed nor auto renewed the deposit which lead to loss of interest for a period of 9 months. Please confirm whether the bankers are liable for the non payment of the right interest. Is it not amounting to Service Deficiency to the customer

    • a k madhok says:

      mr. Ravinder babu j
      Same is the case with me.
      the bank did not renew my ltcg FD for full one year
      after the first year was over.
      they have kept the amount for one year and is refusing to pay me any interest for that period on citing reason that fd was not renewed so u get ZERO interest for full one year.
      please let me know what is the statatus
      of yr ltcg fd which u could not get renewed.
      wating for yr reply.
      thanks

  15. Vedpal Singh says:

    Hi Ranganathan,

    I want to dis invest amount in CGAS a/c to buy another property, and want bank to do RTGS directly to seller, but bank has refused to do RTGS and they do DD only. I will have to pay huge commission to get DD which i want to avoid. I feel that bank is arm twisting me to purchase a DD. Would you pls tell me which was your bank that had no issue with RTGS.

    Thanks,
    sindhu.vedpal@gmail.com

  16. Surbhi says:

    Is any relaxation is available if capital gain amount is deposited in assesse saving account instead of capital gain scheme account

  17. Sachin Bharti says:

    I am planning to sale my property for Rs. 8200000 (82 Lakh) which I brought in the year July-2010 for Rs. 37,21,718.00 when its govt. value was 29, 35,000. I will be buying another property of value around 1,40,00000.00 (1 cr 40 lakhs approx) in immediately within a year or next year. Do I need to pay any capital gain on the difference amount of my purchase & sale price.

  18. SANJEEV SRIVASTAVA says:

    i am invest money 9 lacs in acre buy back scheme in 2013 for 2.5 years guaranteed return amount rs 14.25 lacs please inform about income tax of above intrest

  19. Geetha Mouli says:

    where to find the answers to these questions. I am new

  20. nand kishor varma says:

    I HAVE SOLD MY FLAT IN KOLKATA IN JUNE2016 FOR RS.17LACS WHICH WAS PURCHASED IN JANUARY 2005 FOR RS.6.85LAC & INCURRED RS.3LACS ON RENOVATION.NOW i want to purchase a portion of property owned by my son in mumbai with that amount of money received.Will iI have to pay any tax now if I pay the full amount to my son.plz.advice

  21. Vinay Oza says:

    I SOLD MY FLAT IN APRIL 2016 AND WANT TO PURCHASE ANOTHER NEW FLATS WITHIN 6 MONTHS BEFORE FINANCIAL YEAR 6-17 SHOULD I OPEN CAPITAL GAIN TAX SAVINGS ACCOUNT?

  22. Ayush Sarda says:

    Can I utilise the amount received from Sale of Capital asset in contruction of 2 additional floors on my existing house. Well in this case will I be able to claim exemption?

  23. Abhijeet A says:

    Hi

    I am planning to sale my property (land) and wanted to buy a flat immediately in next 1 year. I am currently living in a rented house and this is going to be my 1st flat / residential property. Also note that, i am looking for a under construction flat for which i will receive possession in next 2 years. I am planning to use money received through land to make payment for this flat as and when construction progress. I am already having an saving bank account in SBI. Do i still have to open CGAS account considering above situation.

    Kindly guide.

    Thanks and Regards,

    Abhijit Arankalle
    9372436187

  24. Ashok says:

    Hi,

    Need your reply urgently.

    We bought two plots in 2006 and from which one of them we sold in Dec2014 and the other one we sold in Feb2016. After indexation the capital gain tax is 21 lakh including both.
    Meanwhile in May 2015 i have done an agreement for a under construction flat for 40lakh.

    Need your help to understand if i can save capital gain tax arising from plots, by clubbing both the gains and buying one under construction flat.

    Thanks in advance, will appreciate your kind help.
    Kumar

  25. satish pandey says:

    I have sold my flat in 6th april-2015. we should to invest in capital gains accounts scheme 1988 for tax savings. What is last date of deposit 6 april-2016 on or before 31 july-2016

  26. chandra says:

    Hi ,
    We have sold our property three years back .
    the money was deposited in Capital Gain account in mothers name. but after three years we coudnt utilze the money.
    Now mother is 82 and we have no plans to purchase the house.
    Now that if we want to withdraw and close the account , we have to pay 20 % tax.
    Is there any way to save the tax now?

    • ajit padia says:

      I invested amount in capital gain scheme, now three years are over but i could not purchase property now can I utilise this fund for another purpose

  27. Arvind Bhaskar Rane says:

    I have received bad experience in capital gains fixed deposits with central bank of India and I am still struggling to withdraw this fixed deposits amount as there are different opinions while withdrawal of amount once the person who opened account and at maturity if he is not exist or he is expired
    Income tax department is helpless as they don’t have any statutory procedures once person expired before maturity of capital gains fixed deposits account
    Please insure with tax consultant first before going to invest in this capital gains account scheme

  28. Deepak Gupta says:

    Hi,
    I have sold 1 property in Jan 2014 and 1 in Sept 2014. and have deposited the amount of both the considerations in CGAS before 30th Sept 2014 (as i’am covered under Tax Audit).
    Now, in January 2016 2 years from the date of sale is about to get completed and i have not utilised the amount anywhere, neither in purchase of any property nor in construction. So what provisions to i need to follow..
    Do i need to pay tax in Current F.Y 2015-2016 or do I have to Wait for one more year.?
    Kindle Revert me with your valuable reply.

    Thanks
    Regards
    Deepak Gupta

  29. zakkir says:

    I had capital gain by selling my flat an year ago. I deposited the capital gain as 4 different deposits for 6 Lakh each.
    Now for buying a new house, i want to give advance of Rs 6 lakhs and for this i want to withdraw one deposit.
    What is the procedure i need to do to satisfy income tax rules? Will it come under closure or withdraw? For withdraw i udnerstand form c has to be used. For closure, i saw that income tax officer has to approve.

    My question is that if i want to take a part of the deposit for advance, do i need to get any permission from income tax officer?

  30. kalyani says:

    My sister-in-law deposited IRS.14,50,000/- in the long term capital gains for 36 months
    at Canara Bank. Now it has already expired and overdue by 6 months. The banker says that she has to pay IRS.45,000/- as income tax for the matured fixed deposit of IRS.21,00,000/- Kindly let us know whether the income tax comes to IRS 45,000/- My tel no.9886922113

    Regards
    kalyani

  31. Hemanshu says:

    Is this applicable to ESOP ?

    If the sum received from buy back offer of unlisted share can be invested in capital gain accounts scheme ?

    Please guide

  32. CA Mitt Patel says:

    Superb Article. Very Informative

  33. C.P.Uttaqm says:

    I have a residential plot.Now I want to purchase a Builder Floor at Gurgaon.The Builder floor constructed by some Construction company.The Plot Owner has signed an agreement to construct the Three floor at his own cost & after compelition of all three floors, right of one floor for sale will be to construction company & that can be sell by company.During construction we are paying the cost of on floor in installment to construction company.after compelition of the Floor, The one floor will be transfered to me.

    Now let me know that,can we pay the cost to construction company in EMI.

  34. DINESH PANCHAL says:

    CAN WE WITHDRAW CASH FOR NEW RESIDENCIAL HOUSE DEED REGISTRATION FEES FROM CAPITAL GAIN ACCOUNT ?

  35. Jigar says:

    I am a joint owner of my later father house. The house unable to use jointly so that decided to sale out.

    Apart from above I have another residential house.

    Can we save capital gain tax arise on selling of my late father house by extension of my existing house?

    -Jigar

  36. apurba karmakar says:

    valuable information.

  37. CNR Simh says:

    HI

    I had purchased a land in 2005 for 1.9L and sold in 2014 for 12.1L. Based on cost inflation index the gain is around 8L. I am investing this in buying a new apartment. To open a capital gain account, should I invest actual selling amount 12.1L or the net gain which is 8L. Please let me know

    Regards

    • kalyani says:

      My sister-in-law deposited IRS.14,50,000/- in the long term capital gains for 36 months
      at Canara Bank. Now it has already expired and overdue by 6 months. The banker says that she has to pay IRS.45,000/- as income tax for the matured fixed deposit of IRS.21,00,000/- Kindly let us know whether the income tax comes to IRS 45,000/- My tel no.9886922113

      Regards
      kalyani

    • Nikhil says:

      Dear Sir,

      The entire amount of gain is to be invested while opening the account. i.e in your case 8L

    • Vivek says:

      I have sold my ancestral agricultural land in 2017 after approvement of development authority.this land is before 1947.what is my tax liabilty

  38. Naresh Anand says:

    I have purchased plot on feb 2001 after six year a one room set constructed onmy plot.In july 2013 It was saled. Total sale amount deposit in FD what can do for tex saving

  39. Ray Vasri says:

    Does anyone know where I can find a blank C and D Form to fill out?

  40. Pratik says:

    i have sold a flat this year which was bought 5years ago.
    I intend to deposit the amount received from the sale in a capital gain account scheme.
    Can somebody please guide me on 2 questions ?
    How much do I need to invest in the capital gain account scheme, the complete proceeds or only the capital gain on the sale.
    If entire proceeds needs to be deposited, in this case since I have already used a portion of the proceeds towards repayment of my bank loan, what are the option available with me ?

  41. Manoj says:

    I want to transfer my CAGS account from one bank to another as existing bank charges huge demand draft commission on each withdrawl. What is the process of moving from one bank to another. Secondly, Inadvertently, I have invested whole sale proceed of my flat in CAGS account instead of only CG amount. How can I withdraw excess amount.
    Please guide

  42. k a sayed says:

    As per the capital gains deposit account scheme, the bank while withdrawing money gives the demand draft/bankers cheque. but while giving banker’s cheque the bank has deducted the commission for issuing the Demand draft. Are the bank’s allowed to charge such commission.

  43. sumir patel says:

    I want to open the cgas account but this account kept for two year without using anywhre place and its automatically will transfer in saving account.???

  44. RAMANAN says:

    Recently we sold a family property and all the legal heirs got the share of purchase consideration, MY wife is one of the beneficiary and wish to avail the benefit of capital gain tax exemptions.
    She propose to buy a residential property (flat) JOINTLY( 50% share) with her brother who is also one of recipient of the sale proceeds.
    I wish to know in such case whether both are eligible for the capital gains for the amount they have invested in the new property.

  45. HARISH GULATI says:

    PLEASE GUIDE IF CONSIDERATION RECEIVED ON SALE OF PROPERTY, CAN
    BE PARKED IN CAPITAL GAIN ACCOUNT WITH JOINT NAME.

  46. HARISH GULATI says:

    Please inform whether consideration received on sale of property can be
    parked in capital gain account, with joint names.

  47. Ramesh. T says:

    I bought Agriculture land value of Rs. 20 lacks. Am I have any tax benefit?

  48. walter says:

    I am NRI purchased land with residential building on 28/11/2011 total purchase cost 33 lakhs.Now the whole property is going to sell to a govt office ,total sales cost 2,60,00000. The whole payment by cheque or draft.
    .I already have another residential house.Now I want to save capital gain as I am going to buy new property to construct residential house.
    The buyer,Govt company, insisting TDS at the registration time which is not acceptable for me.If I am prepared to deposit the whole capital gain amount with capital gain account scheme with approved bank ,can I insist them not to make TDS at the time of registration of the selling property.
    Could you suggest what are the methods by which I can insist them not to make TDS at the registration of the property.

  49. Sowmya says:

    Sir,

    Really appreciate the good article.

    I sold a property in March 2015, did not deposit the amount in CGAS. The entire amount was paid to another builder after 1st April 2015. The building will be completed in October 2015 and will be registered in my name during December 2015. How do I deal with this in the return to be filed before 31st July 2015.

    Thank you!

  50. P Aravindhan says:

    There are lot of overdue deposits under capital gains term deposits. How banks have to handle these deposits

    There are many grey areas evident from the queries raised here.
    CBDT shall revisit and bring out FAQs.

  51. rajagopalan.a says:

    very good article.useful to all.

  52. Satish Agrawal says:

    Sir, I also Deposit the CGAS Scheme but deposit after one year i.e. one years 3 days of sale of property. Can i use this scheme ot not.

  53. Manoj says:

    Shall I utilise this amount from CGA for the repayment of house loan already purchased in the previous years.

    with regards

  54. ashok says:

    Is it applicable for capital gains made on account of sale of property only or is it applicable on capital gains made otherwise ( Ex: Sale of Shares etc) Pl advise

  55. Bharat Bhushan says:

    Sir
    is it possible that I open Capital Gain Secheme Account and keep money there for more years to avoid long terms capital gains by sale of property. I do not purchase another property. By keeping fixed deposit in CGSA can I save capital gain.
    I shall obliged for reply.

  56. Tridip says:

    I entered into a JDA with a builder in 2011 and by that jda it was agreed that I would be given 2 flats and some cash. The land was not sold to the builder – he had only the construction rights through a POA. I got the possession of the flats in 2014 Feb after the development was completed. I have sold one of the flat recently. I have deposited the money in a capital gains account and plan to invest the money in a new property.
    Are there any short term or long term tax implications?

    Please advice.

    Thanks, Tridip

  57. Rajuperu Peru says:

    I’m one of the promoter of the private limited company which is not listed established in 1994 . In December 2014 I sold my shares in to another partner. Now I want to know to save capital gain tax what I should do.

  58. p m menezes says:

    what is the time limit to utilize the amount kept in capital gain account. when the limit start? whether from date of sale of property or from depositing the amount in capital gain a/c. also please clarify whether the interest accrued can be use for purchase of new property.

  59. vivek says:

    In case assesse withdraw more than Rs.25000 fron CGAS in cash , then who is liable for this mistake ,Is any case avialable regarding to this problem.

  60. Nisha says:

    We sold the property in dec 2012 and deposited profit in capital gains account. At the time we had odentofied the property we wanted to purchase but that deal fell thru. So we paid revised tax on profit and wanted to withdraw money from capital gains account. It has been more than a year and we are still getting run around from income tax office and accountant. Can you please tell us waht is the procedure we have to follow
    Thank you very much for your help
    Nisha

  61. RANGANATHAN M K says:

    We opened CGAS account on 23-10-2013 with deposit of Rs.20 Lakhs. and the same was utilized for purchase of plot and the CGAS money was allowed send to the seller of the property by 29th October 2013 through RTGS facility of the bank. We were not aware that we had close the account immediately. And still balance of Rs.960/ is in the CGAS a/c.

    Also I had by mistake transferred Rs 6 Lakhs from my savings account to my CGAS account in the same Bank instead of sending it to one of my Loan account on 17-09-2014.

    How do i recover that money from CGAS Account?

    Please help us in this regard.

    Thanks,
    Ranganathan

  62. vinod B says:

    what finally happens to the interest earned on closure of account?.
    1. one cannot withdraw it.
    2. one pays tax on it
    3.

  63. nitin bhalerao says:

    It is very useful information to general public

  64. Ramana says:

    I have recently purchased a flat by availing a loan of Rs.10 lakh and the registration is completed. I have another old flat, which i intend to sell now. Can the amount gained from sale of the old flat be adjusted to the loan availed for purchase of the already acquired new flat, to avoid Capital Gain Tax?

  65. B SREENIVAS says:

    Very useful and informative article on Capital Gain Deposit Account Scheme. Thanks a lot

  66. Bhavesh Gosar says:

    Withdrawal of Unutilised fund from Capital Gain Account in Nationalised Bank :

    There was a capital gain on sale of shop on 22.9.2010 & said capital gain was deposited in capital gain account in State Bank before due date of IT return.
    Now after completion of 3 years, said capital gain amount is not utilised for purchase of any residential property.

    What is the exact procedure to withdraw the unutilised capital gain amount which was depsited in capital gain account.
    Only payment of Income tax on said capital gain in current F.Y.2013-14 is sufficient to withdraw the amount from capital gain account.

    Interest credited in above capital gain account was already added in respective year income then any need to pay any further tax on the withdrawal of said interest accrued in capital gain account.

    Kindly reply.

    Thanks in advance.

    • Aditya Vikram says:

      I earned LTCG on 9th June, 2017 on the sale of a Capital Asset . Before which date must I open an LTCG A/C – before 9th June,2018 i.e. one year of sale of the Capital Asset or 31st July, 2018 i.e. last date of filing of I.T.Return?

    • Baidya nath raha says:

      this is very useful for us.

  67. KD Shenoy says:

    I sold a flat in Oct’08, which was purchased in 1984, and deposited the capital gains amount in a CGAS immediately. I utilised only 70 % of the CGAS account for purchasing a new flat whose delivery was taken in Sept’10. The question is whether any advance tax payable on the balance 40% amount in the Q3 or is it sufficient to pay the requisite tax before by the last date of filing return for the AY 2011-12?

  68. Dhara says:

    IDBI is also authorised to accept deposits in the case of Capital Gains Accounts Scheme

  69. Deen says:

    What are the consequences if one does not deposit in Capital Gain Account Scheme within the time limit????

  70. parag says:

    Very good article.

    It is laid down that the assessee has to deposit  Capital Gain amount in specified bank in Capital Gain Account Scheme before filling the return of income..i.e. say upto 31 july. 

    Here suppose in a given case assessee has long term capital gain u/s.54F(transfer of long term assets other than house property) in the month of May 2010, and he does not file his return of income by  due date July,2011 and he also does not deposit the Capital gain amount in the specified Capital gain scheme by July,2011. But he purchased the new Residential House before 31st March,2012 and file his belated return before 31st March,2012.

    What are the consequences? As he does not deposit Capital Gain amount in Specified Capital Gain Scheme. 

  71. MMSingh Dhupia says:

    Can an NRI with CGD Account invest in Canada House Property?

  72. MMSingh Dhupia says:

    Very good and informative article.

    I would however like to know whether the re-investment on property out of CDAS has to be essentially made on property in India only or it can be invested in property out- side India – say Canada, if the account holder happens to be an NRI.

  73. MMSingh Dhupia says:

    Very good and informative article on Capital Deposit Account Scheme.

    I would however also like to know whether the re-investment from CDAS in the property has to be essentially made in India only or it can be invested in property in Canada if the account holder is an NRI.

  74. Himanshu Taneja says:

    Very nice article .. in depth! keep up the good work !

  75. G. Padmanabhan says:

    Request the author to confirm whether Capital Gain B Scheme is still in vogue. Is there a specific stipulation that the interest on fixed deposit cannot be utilised? Can the author arrange to furnish the notification itself with latest amendments?

  76. MANPREET KAUR says:

    GOOD ARTICLE WITH CLARITY ON DIFFERENT ASPECT OF CAPITAL DEPOSIT ACCOUNT

  77. Duke Sekhon says:

    Very informative. Thank you!

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